Dividend Basics with the Robinhood App

Dividend Basics with the Robinhood App

dividends are not super complicated to
understand but they can get a little bit techie if you’re new to investing and
that’s why I’m making this video for you guys so that you can understand the
basics and then you can move on from there so in today’s video I’m gonna
explain how dividend paying stocks work but I’m actually going to be using the
Robinhood app specifically so that you guys can navigate through it and see how
it works I’ll just cover the basics and how to navigate everything directly
through your phone so that you guys can see exactly how easy Robinhood is to
use especially when you’re looking at dividends dividends are gonna pay out
the exact same way no matter which brokerage you’re using so it doesn’t
really matter if you’re using Robinhood or if you’re using someone else but the
point of this video is that I am gonna show you how to navigate Robinhood so
that you can find the dividends so that you can research them and then you can
also see where they’re paying you and how to find that stuff out now if you
just found this channel I’m Jason with honest finance and I make a lot of
videos on different topics that will give your life and your finances more
value so if you guys are interested in this type of content definitely consider
subscribing but for now let’s just talk about Robinhood and specifically
dividend stocks through their app now before I go into the app I do need to
show you guys just a few of the basics so that you understand how dividends
work before we get started so basically the way that dividends work is that if
you want a share of a company that actually pays out a dividend then what
this means is that they’re actually gonna give you a tiny little piece of
their earnings through what’s called a dividend and they’re usually gonna pay
that out about four times a year in the form of cash and that is a really good
thing because it’s true passive income like I said earlier they usually payout
four times a year but this can actually fluctuate because I found companies out
there that payout once a month and that’s pretty cool because that’s
happening twelve times a year rather than just four times a year like
most companies and then every once in a while a company you own might actually
declare a special dividend and that’s actually really cool because those can
be a lot more money than typically their normal dividends and so that’s always a
really cool surprise honestly in my opinion I think the dividends are
freaking sweet because they are truly passive income and you don’t have to do
anything except just own a share of a company in order to get paid out a
dividend you can also benefit from tax savings as well because if you want a
qualified dividend then that actually means that you’re gonna be taxed at the
capital gains rate rather than the marginal rate that we’re all used to and
that can actually save you a lot of money too
on how much money you’re making in dividends and how much money you make
per year that stuff does get a little bit too techy to talk about in a video
like this so you’ll definitely want to speak to a professional about the tax
savings capital gains and stuff like that but just keep in mind that if you
buy the right type of dividends that are qualified you can save quite a bit of
money on your taxes I’ll link up an older video that I made on dividend
stocks and I’ll have that right up here if you guys want more technical details
on them but for right now we are gonna go into the Robin Hood app and we’re
gonna specifically show you how to go through the dividends how they pay you
out and all that kind of stuff so let’s go right into that and then we’ll just
move on okay so the way dividends work inside of Robin Hood is super easy you
just have to look up a specific company and then you need to find out yourself
if they actually pay out a dividend or if they don’t okay so for example I know
that Microsoft actually pays out a dividend and their ticker symbol is MSFT
and right here it’s on this watchlist but if you can’t find it you can always
search for it so we’re just gonna click on that and go right into Microsoft and
then right at the top here that’s the value of their shares right now so one
3738 looks like they were down today 1.2 6%
anyways all you’re gonna do is just scroll down here until you get into the
stats section and this is exactly gonna be the same on all the different
companies that you look at so inside of the stats just look here at the bottom
right and it’s gonna say div yield okay and what that means is the dividend
yield and yield is a percentage so it doesn’t mean that they’re paying you a
dollar 37 per dividend it means that it’s actually 1.3 7% as a dividend yield
and then just keep in mind that the yield is actually an annual percentage
okay so if you’ve got one point 3 7 percent just keep in mind that you need
to divide that by 4 if they’re paying four times out of year and you’re not
actually getting paid one point three seven percent every single time that
they pay out now if you want to find out how often a company actually pays out a
dividend you can’t find that out on Robin Hood which is kind of annoying but
it’s not the end of the world so all you’re gonna have to do is just go to
the Investor Relations page on the exact company that you’re looking up or you
can go to Yahoo Finance or you can look it up on like the NASDAQ and stuff like
that and you can find out how often they’re paying a dividend and you can
see the entire history of the dividends but if you’re inside Robin Hood you are
not going to have any of that information the only information you
have is the div yield which is just fine but I can see right here that is just
one point three seven percent and that’s a pretty low yield but I got to consider
here that it’s a tech company and usually tech companies don’t even pay
out a dividend so that’s a good thing now I’m gonna back out right here and
I’m gonna show you guys another company that doesn’t pay out a dividend okay so
amazon.com right now they currently don’t pay out a dividend so I’m just
going to click on that AMZN we’re gonna go right into them and it
looks like their shares currently are seventeen hundred and forty-two bucks
and eighty five cents so let’s go down to the stats now look on the bottom
right just like I told you guys earlier and you’re gonna see that it is a zero
dividend yield and that implies instantly that they don’t actually pay
out a dividend which is okay because they’re a growth stock and you could
expect them to grow tremendously over the next probably ten to fifty years I
bet but as of now they do not pay a dividend and that is exactly how you can
find that out through Robinhood is just by checking the specific company that
you’re looking into so zero for Amazon and then I also know that Google doesn’t
pay a dividend right now but don’t wait that on the stocks that you’re actually
gonna buy because you’ve got to consider that they can grow tremendously over
time and a lot of the companies that are paying out dividends probably you’re not
going to have the same growth that some of these other companies do also don’t
be deceived by companies that have really high dividend yields because a
lot of the time that might sound good like you’re gonna get paid a lot but the
thing is is that a lot of the time that company can actually be struggling and
you need to look into a lot of other factors before you just buy a company
based on the dividend yield so for example if you look up gamestop here I
know that they have a really high dividend yield right now okay game stop
right here GM e we’re gonna go into them I haven’t really looked into this
company so just take this with a grain of salt but if you look at their
five-year track record it does not look like they’re doing very well their
shares are five dollars and twelve cents right now but you know maybe they maybe
they do have some stuff on the books that’s really good but like I said I
haven’t looked into all of that stuff but from a very shallow perspective I
don’t see people buying physical games in the future I see them buying digital
games and so that’s why I’m not really into these guys but if you look at the
stats okay let’s go down here to the div yield thirteen point five two percent
that is freaking amazing but the problem is is that if you look
here back at the five year track record you’re losing money on your shares okay
so just keep that in mind and do your research and just don’t fall into the
trap of buying a bunch of different companies just because they have really
high dividends you don’t want to be doing that you really want to be just
making smart moves and buy your shares for a very long period of time and hold
them for a long period of time and in that context you’re probably going to do
just fine okay but just keep that in mind okay so the way that you actually
find out where you’re getting paid your dividends is really simple in Robinhood
all you’re gonna do is click the little person symbol on the bottom right and
it’s gonna go into this main menu here that has your history your settings
account summary and stuff like that and also just so you guys are aware where
you see the thing where it says invite friends get a free stock what this means
is if you actually give them a referral link you get a free share and they get a
free share and it’s totally random you’re probably not gonna get anything
that special but I do know a ton of people that have got like Apple shares
and stuff like that so I will leave a referral link in the description to get
a free stock if you guys want to take advantage which means if you just sign
up within 24 hours you’ll get a free stock and I’ll get a free stock and then
also if the program ever does change I will disclose that in the description so
like if it turns into an affiliate link or something like that I will let you
guys know or if their terms change as far as getting a free stock and stuff
like that so just keep in mind that I’m just being transparent with you guys so
that you know exactly what you’re signing up for if you click on the link
okay so now we’re gonna look at where our dividends reside inside of Robin
Hood and all you have to do is just click history on this menu and that’s
all we have to do so we’re gonna go right into my history here and you guys
can see there’s not much happening in my account right now I’ll be honest I’ve
moved a ton of money into different brokerage accounts so you’re not gonna
see much fanciness going on here but it looks like G ood paid a dividend of 50
cents and then over the last 30 days Ford paid a dividend of 90 cents I got
another dividend from good G ood because they actually pay monthly and then you
go down here and these are my different random transactions that I’ve had so
looks like I took out 526 bucks let’s see here let’s keep going
okay here’s another dividend SCH X dividend so that would be a Charles
Schwab index fund that I used to have and then Ford so yeah that’s how you’re
gonna tell where your dividend come through and they’re just gonna come
in in the form of cash and they’re just gonna sit right inside of your account
and they’re not gonna do a thing until you either transfer it to your bank or
you buy another share with it otherwise they’re just gonna sit in a giant pot
and that is exactly how you find out where your dividends are inside of Robin
Hood so just remember all you do is you just
click the little person on the bottom right okay you’re gonna go down to
history you’re gonna click on history and then right here it’s gonna tell you
everything that’s happening so that’s exactly how it works and that’s all
there is to it dividends are very easy to understand on
Robin Hood but just keep in mind that dividends are the same everywhere
because they’re following the exact same rules it’s just a matter of how you can
actually see they’re benefitting you and I think that on Robin Hood it’s really
easy to understand that and I like that transparency about them and then also
keep in mind if you guys do want to take advantage of the free referral stock
definitely go for it right now I’ve got the link in the description and once
again I’m Jason with honest finance and I make a ton of different types of
videos that will give your life and your finances more value so if you guys are
interested in any type of content along those lines definitely subscribe but I’m
just gonna leave some other Robinhood videos over here that you guys can watch
and that’s all let me know how you guys like the video Thanks

10 thoughts on “Dividend Basics with the Robinhood App

  1. Another great video! Robinhood is one of my favs. Used scottrade and ameritade in the past. I like the layout of Robinhood more.

  2. Hope you enjoyed the video and here's the referral link if you have any interest.
    Get a Free Robinhood Stock: http://bit.ly/RobinHD

    (Referral link)

    And here’s another link to get a free stock worth $8-$1,000 from Webull (they’re legit 😎) if you want more free stocks. http://bit.ly/Webull_HF

    (affiliate link)

  3. I think that robinhood is the easiest free trading app for new investors. I also really like webull for dividend stock picks since you can see the ex dividend date, how much the dividend payment is and history of dividend payments right on the app. Great content

  4. Hey Jason,

    Great explanation about what dividends are and relating it in simple terms that everyone can understand. In addition, great point about not always chasing yield. That’s a common pitfall that people fall into. Appreciate the work you do!

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