039 - Use The Right Screener To Narrow Your Investment Options Down By 98%

Using the right screening metrics will narrow down your pool of potential stock investments from 19,500 to a couple hundred in a matter of minutes. 

Then if you do a little bit of research, you'll have a handful of stocks to buy right now. It's that simple and frees up a ton of your time and energy. It also releases you from needing to listen to anyone else's input for which stocks to buy. 

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Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here. 

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**DISCLAIMER**
Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here.

Episode music was created using Loudly.

Transcript

Welcome to Roaming Returns, a podcast about generating a passive income through investing so that you don't have to wait till retirement to live your passions. In today's episode, we unveil the metrics that Tim uses to narrow almost 20,000 stocks down to a couple hundred.
Then a little bit more research reduces that number down to a select few that you can invest in right now. Tune in so you can implement this ideal screener to kick overwhelm and uncertainty to the curb forever. All right.
So today is the day that we're going to talk about the screeners. And the reason that this is super important is because you do not want to have to be individually, painstakingly researching and deep digging into... This is probably the most important preliminary thing you'll do before you actually research anything. Yeah.
And it narrows it down. So it's like if say you're looking for the color red and you just dump a whole bunch of crayons on the thing, you obviously are going to take anything out that's like a remotely good like red shade. And you're going to get rid of the whole other pile of stuff before you determine like what color red you're actually looking for.
So it narrows the ginormous, unmanageable amount of stocks down to the things that are probably going to be contenders when you go to do research. So you don't waste time. And you still have to do research.
I can't stress that enough. Like this will narrow it down, but you still have to research. You can't just rely on these metrics and say, well, that's a good one.
I mean, you may be able to get to that point if you really get crazy. But Tim only has four specific things that he does to run it through the screener. You might have six.
You might have three. Like if you're a nerd and you really want to be able to spit out exactly what you want, you can get real crazy with this. That's not Tim's approach.
Tim likes to just narrow it down using these four. And then he does. It's my starting point to then do deep dives into different things.
But I can kind of after you use it long enough, you'll be able to look at things and be like, oh, OK. If you do enough research and deep dives into things, you'll be able to know that tobacco has like a P.E. of around eight. So then you can just cursory glance at Philip Morris, MO, Altria, a British tobacco company and be like, OK, well, their P.E. is nine.
So it's above eight. So I don't have to look at that one. But that comes with time.
That is not something you're going to be able to do right out of the gate. It comes with experience. It comes with time.
It comes with knowing what you're looking for. And it's like any other skill that you end up honing. You got to go through the baby steps.
You got to build the foundations. And then once you're immersed in the day to day with investing, you'll start to get you'll start to see the familiar patterns. You'll start to notice like, oh, yeah, I don't care about this stock.
Like what's one, for example, you know, that'll pop up that you're like absolutely not interested in right there, Ellington Financial. I don't like I know that's a shit company just without even having to look at it. I know that's a shit company because it's it's a BDC.
And I spent so much time in BDCs with all of my other stuff that I know that that one's garbage compared to the other ones. OK, now, is there ever a point that you would reevaluate it? Um, yes. But if this went down, if that if that was around 20 percent, if this was better than point three, three, like two or three years from now, say this at like five or six, then I'll be like, OK, I can double.
I can look at it again. Like I said, Tim's comfortable with using just four metrics to screen thousands of stocks down to like this thing just spit out 139. That is very manageable compared to thousands.
There's like 20 there's 19,500 potential stocks, bonds, ETFs, blah, blah, like some combinations just in American stocks. And you do this every week? No, I do it for every quarter. You generally.
OK, so see if I'm missing anything. But then like I'm comfortable with the portfolio. So I haven't done it in four or five months because I don't need it.
I don't want to generally like if I have 10 to say I had $10,000 in bullet shares, I'd be like, well, I need to put that in something that yields more than seven percent. So then I would screen. To find opportunities.
To find opportunities. Yeah. OK, so you're going to be prompted to go and do this.
But like if you were doing it on a specific time range, amount of basis, say it's quarterly, you would not want to have your screener shoot out a high number that you cannot possibly research in the time it takes you to then have to start the process all over again. Every brokerage has its different version of a screener. I use Schwab because I find Schwab is the easiest to get what I need.
Like Vanguard, as much good things as I hear about Vanguard, Vanguard is crap for pretty much everything other than trading. And we actually are going to do an episode on different brokerages because. It's just ask.
I have so many people asking about that and it's like, well, your metrics, this, that. But we found a really good article that talked about. For example, I'll show like so this is how inefficient Vanguard is.
Say you want to research IBM. If you type in IBM in the search bar, it'll bring up 15 different things to choose from. So you'll click on IBM, the company, and then it'll bring up like the primary ticker page.
And then you'll actually have to click on more information on this stock and then click on that and it'll take you to a completely different page that you then have to scroll down through like a thousand things. Like it's very inefficient. You literally have to go to a different page and then have scroll, scroll, scroll, scroll, scroll, scroll, scroll to find what you need.
It's awful. I don't like Vanguard at all. From a research standpoint.
From a research standpoint. From a trading standpoint, it's all right. I mean, we're not discussing that, but it's like 15 minutes behind.
Like you can't trade at like 930 like when the stock market first opens because the prices aren't accurate. We'll go over that when we actually do the comparison between different brokerages. But the gist of this is we are choosing Schwab to do the research in because it spits out in the screener, a very nice, concise spreadsheet looking thing for very easy filtering and ability to just rule out and narrow it down and then move on to the research phase. You want to be able to do this as fast as possible, save yourself time, save yourself energy. Because the long slog is when you have to go in and research individually.
So like you want this to be quick and nearly like two minutes. You literally want this to be quick and dirty. So my question to you now is, we've been talking about there's four different metrics.
Why do you feel that only four metrics? Because through the years, I've been through multiple different metrics and I've settled on these ones because they generate the list quickest that are probably undervalued. Okay. So undervalued is like the highest importance? We preach about contrarian investing, value investing, income investing.
Well, to be a contrarian value investor, you have to find undervalued things. And to find undervalued things, they have to be close to their 52 week low and they have to have a lower PE. So like, that's two of the metrics I use.
We don't really do the screener unless we are looking to diversify or to buy different stocks. So using that as the criteria, if you wouldn't have that as one of the criteria, they wouldn't even be in the buy range for our own criteria. Correct? If we weren't putting that low value thing in.
I probably wouldn't find them because like, seriously, there's like 20,000 different things to look at to maybe might find them. And that's the thing because he just pulled this up and I'm looking at it and it's got like hundreds of different options that you can put in for the screener and making it easy, make it simple, making it efficient. You could probably have a million different combinations between what your criteria is that you're screening for.
And like I've done probably 50 different screeners through the years and I just stumbled upon this. Somehow I got lucky. And then I was like, well, that worked way better than the last one.
So basically our suggestion is start with what we're talking about. And then if you want to expand upon that and get more nitty gritty and nerdy and do whatever you can expand and change the screener. The reason I didn't do more though, is because I like, like I said, I once I've narrowed the list down, winnowed, winnowed the list down.
Winnowed. Once I narrowed the list down, then I go in and research everything individually. And then I compare it to what we currently have or what your mom has or what the third portfolio has.
And then I'm like, well, that seems like a good, good idea. All right. So enough intro crap.
Let's roll into the four metrics. The four metrics. The first one is dividend yield, because we are looking for something that pays us income.
Like you could easily get into something that pays like one percent, but that doesn't pay. And that low yield. So what's your threshold for the yield? Because Schwab only has it, it's four to six percent or above six percent.
There's only like four tabs. One's zero to two. Then second one's two to four.
The third one's four to six and the fourth one's six and greater. So I do six and above four to four percent or higher. It's basically like what I screen for, for the dividend yield.
The second one is price to earnings. You have to have a general idea of what the overall market's price to earnings to, to have an idea of what to put this in. I have it at what less than 10 or 10 to 20.
I think it goes less than 10, 10 to 20, 20 to 30 and then 30 to 40 and 40 and above. So I just take the bottom two. Then the third one is the percentage above the 52 week low.
The reason being is the closer it is to its 52 week high, the higher probability that's overvalued. The closer it is to its 52 week low, the higher probability that's undervalued. Yeah, that's actually a really smart way to do that.
And you said that was like the gold thing you just stumbled on. Yeah, that was the one I stumbled on. I had all this other stuff before, but I never had the percentage above the 52 week low.
And it has different, again, different categories, like things you can click on. I do zero to 20 because that means it's either at its 52 week low, below its 52 week low or within 20% of its 52 week low. So that to me is fine.
I like that. That sounds good. And then the fourth one is the five year dividend growth rate.
Because we are contrarian value income investors, we want the dividend to be increased. They have a one year one, but that could just be a one off thing. So I settled on the five percent, the five year, I'm sorry, the five year because that actually shows a somewhat of a track record for five years.
Yeah, a consistency, a pattern. And the reason we want this too is like if they're not continuing to grow their dividend, they're not keeping up with inflation. And the whole goal of the portfolio is to continue to pay us for life.
It's that. There's two primary reasons why I want it to be five year dividend growth above one percent because like it's, I mean, there's ones that have above 10%, but that then only gets you like four things in your list. So like you do want to minnow your list down to a manageable number to research, but at the same time, you don't want it to just shoot out six different options and that's it.
So you have to settle on the sweet spots where you get multiple different things to look at. Yeah. Like if you have too many outliers, you might want to narrow your criteria down.
And if you get not enough options, then you really have to maybe expand your search criteria. And I use the 1% to 15% five-year dividend growth. I find anything above 15%, like there are ways that they can finagle that to make it seem higher.
Like they can pay you 1% dividend for four years and then have like a year where they just give you a completely crazy variable dividend and where it shoots it up to 15 or 20%. Or, and then again, at the same time, like as much as I like high yielding stuff, the probability is higher that if it's yielding 25%, there's something seriously wrong with it. It makes it way more risky.
Well, I was actually going to ask you that. I was surprised that you're actually encompassing the four to six range for yield. That covers a lot of the utilities.
I was just going to say, doing the utility episode, you start to see that some of these, there's like trade-offs and the ones that have like the muni bonds, even though they're only paying four to 6%, you have to take into consideration that tax-free aspect. So it actually bumps that up. One of the areas where I've been tinkering a lot, because I used to have it like six to eight or eight to 10, but I found the four to six range seems to be the sweet spot where they have the best five-year dividend growth rate.
I guess if you're paying out too much a year, you don't have the opportunity to raise your dividend every year. But if you're paying out too little, that means you're not raising your dividend enough. So I found the sweet spot to be four to six, because then you'll get a lot of the companies that are really good companies that then raise their dividends six or eight or 10%, two or three years or 5%, two or three years.
And that's awesome. That's absolutely awesome. That allows you to keep up with inflation, keep growing that nest egg.
We've went over it before, where if you're getting a 5% yielder, but you're getting it undervalued by like 60% and it's growing its dividend by 5% or 6% per year. So by the time it gets back up to where it should be, your total yield is going to be eight to 10%. Yeah.
And I'll even say when we first started, or I first started doing this or looking into this stuff, I was like, why would you ever pick the dividend aristocrats that are only paying like one, 2%? And then it's the growth aspect. It's the fact that they continuously increase sometimes up to 10%. Oh, it's very seldom have anything below 4%.
Yeah. So it makes sense that, okay, the fours make sense. One we had was Calm because Calm was paying like 10% and then it cut its, then it didn't do anything with its dividend for like a year.
So its dividend was like 1.2% or something like that. And the other one's AFG, but that's one that gets mislabeled as a 2% yielder because it gives a special dividend every year. They don't actually encompass that in its dividend yield.
I was going to, so that's actually what I was going to ask you. That yield doesn't include those special dividends. I wonder if we actually miss any.
Well, probably. But that would make sense that like going lower with dividend yield, you'd encompass then or you'd find those like... Like Hercules Capital, for example, usually pays two out of the four quarters, they'll give you a special dividend. We just got one for 8 cents.
That 8 cents isn't actually included in its yield in most brokerages when you're doing a screener. Now, I don't believe it's actually included. If you just look at the cursory thing in Yahoo Finance where it says Hercules Capital yields 8.7%, I don't believe that the special dividends are actually included in that either.
So my question would be, would that one come up in the screener? It didn't, no. So it would only come up eventually when it got close to its 52-week low then probably? Maybe. Okay.
Possible. And that's why Tim does do this on a frequent basis because it's like we find stuff all the time that's something we didn't even know existed. It's always changing.
It's always in flux. And that's like part of the beauty of this for me as a numbers nerd is I love that things change, that it doesn't get stale because I'm always finding new things to research. Other people want stale.
They want it to be boring and that's completely fine. That's your – Yeah, if you find your core ones, that's absolutely great, but you can't find them unless you go through these steps first. I enjoy the actual always needing to research stuff and finding new things and revisiting things that I visited like three years ago.
Like, oh, the company has done this and this and this in the last three years. Interesting. Like for example, one of the ones that he brought up I think when he decided on this screener was the UGI, that other UGI stock.
UGIC, yeah. Yeah, I don't think we brought that up on the podcast. So it was right after we did the utility episode where UGI came up as one of his best picks for utilities.
But then he was doing this screener and he's like, what is this stock? Because I've never seen this before. Two of them. There was UGIC and AQNU.
Two of these I've never even seen before, but I've actually researched UGI and I've actually researched AQN multiple times and I've never seen them before. They came up on the screener. UGIC is a corporate stock.
What that means is literally you get none of the rights of the stock. You just collect twice as much dividends. You're getting 12% with UGIC.
So it's almost like the preferred share, but it's not the same thing, right? But they can call it back at any point. When they call it back, you don't get a chance to say, I don't want it. They'll literally just convert it from UGIC to UGI.
And we like UGI. So we were like, there's no downside with this, right? And you said it pays twice as much as it paid for UGI. Yeah.
Twice as much. It was like 13% and UGI was 6.5%. And that's so freaking cool. That stock's been out for a while and we had no idea that was a thing, but it just popped up on the screener the one day.
And AQNU is the preferred share of AQN. I never even knew AQN had a preferred. Yeah, because they are kind of hard to find sometimes, especially if you're not using a job.
Utility preferreds are very difficult to find. So if you're looking for a preferred share in utilities and you have a way to find it, dude, reach out because I can seldom find preferreds for utilities. I know they all have them.
They have to because they're always taking on debt. So they have like bonds or preferreds or all that, but I can never find them. Oh, you don't know how to find them.
No. So what was I talking about? I forget. Okay.
Sorry. I literally just put this stuff into my screener. That went from 19,000 down to 139.
19,500 down to 139. And if you use those four points, you have a very good starting point because you then can sort them by however you want. If you want something that's more undervalued, you can click on the percent above your 52-week low.
Okay. So my question is now that we have 139 popped out of here, obviously that's probably too high, too many that you want to actually do research on. You can get rid of a lot of them.
You look over here at the five-year dividend growth. So that's exactly what I was going to ask. This one's shit.
This one's shit. What do you filter by? The closest to the 52-week low? The five-year growth? Which one do you filter by? Well, it's a combination because it comes up in this nice little matrix-looking thing. I can literally... You can go through... This one doesn't matter.
The annual dividend yield doesn't matter? The dividend yield doesn't really matter. It's just a piece of information that's good to have, but it's these three columns and you can look at them because the PE, you don't want that to be close to 20. You want it to be closer to zero than you do to 20 because that means its price to earnings is... Most likely undervalued compared to its peers.
The percentage above the 52-week low, you want that to be whatever the... Less than 20 obviously because you do the zero to 20, but the lower the better. Yeah. Again, closer to zero, better.
And the five-year dividend growth, you want that to be the higher number. So you literally could just scroll through this and you'd be like, well, this one here looks pretty good. What is this one? DMLP.
Oh, so it doesn't actually have a filter button where you can rank? You can literally just... Oh, yeah. Okay. So it does.
And it'll filter by that column. So you can filter all three of these and see what comes up. And if you start seeing, take the top 10 or the top 20 in each one.
And then you can be like, oh, that one's cool. Look at that one. That one's... DMLP.
DMLP. It's a mineral company. 11% yield, 10.96 PE, 17% above its 52-week low, and 14% five-year dividend growth.
That number is a little high. I'd prefer that to be lower, but I mean, that's a good starting point. The percent above the 52-week low? Yes.
Yeah. You just keep them. That's all you do.
And then you literally... That was another good one. GLAD. I've heard of GLAD.
I think it's been in the emails a couple of times. MO came up. Oh, there's a really good one right there.
DC... OCSL. Oh, that's an O. I need my eyes checked. Anyway, I... So do this for yourself.
Go into whatever your brokerage account is. Run those four things. What you'll come across is like BMY is on the list.
Bristol Myers only has a 5% yield, but all the other numbers are fantastic. Chevron came out on the list. It only has a 4.3% yield, but all the other numbers are fantastic.
BTI, MO, MPLX, LTC, OCSL, GLAD. There are ARCC, which has shocked the shit out of me because that's really... I think that's the biggest BDC. But you do this and then you'll have a place to start.
What I do is I've opened up a spreadsheet and I'm like, well, that one looks interesting. So then I have a spreadsheet of stuff to research after I go through the list. And then I just individually search everything to make sure that the revenue is growing, the debt's going down, profit margins are going up or they've been stable.
And it's simple. Once you actually narrow the list down, it's simple to do the research. Once you establish the metrics that are important to you, I find personally, the ones I just mentioned are super important.
Revenue's going up, debt's going down, and the profit margins are going up. The reason why revenue obviously means they're doing more business. Debt going down means they're not going to have to pay off as much debt.
And profit margins going up means they have more wiggle room to raise the dividend more. Those aren't the only things you look at, though. You kind of get a general picture for everything when you start digging in.
Because it's like sometimes if they know that they're taking on debt, like Camping World's a really good example of that. They're taking on a lot of debt with the intention of pushing a lot of growth. So that makes sense.
And if you believe in the company doing what the company's doing for justified reason, that might not be something to not invest in, but to keep an eye on. But the Camping World would be on that list because of the five-year dividend growth. Except that it cut it, but yeah.
No, I'm just saying that's why the screener I have is freaking awesome. Because generally, you won't have to even worry about researching something like that because the five-year dividend growth with all the other two columns, the dividend yield doesn't do shit. The other two columns basically weed out all the ones that have cut their dividend within the last five years because you're not going to have a high percentage of five-year dividend growth if you cut your dividend.
That's a valid point. So it takes two minutes to run the screener. How long does it take you to actually skim through the screener to pick, I don't know how many, 20 stocks or something to research? 30 minutes.
Okay. So 30 minutes there and then- Depending on the sub list size, like that one, the 140 probably take 15 minutes. I've had some with the same screener shoot out like 250 and that took 30 minutes.
It doesn't take long. You literally will have five or six decent things to buy within an hour. That's really good turnaround time.
Like really, really good versus trying to spend time listening to these talking heads. 10 different people can tell you the exact same or completely different things for the exact same ticker. If you go in and you do the research yourself, you have the actual data, you have the facts right in front of you.
That's why I've always said, that's why I say no one cares about your money more than you do because if you just do the research yourself, don't rely on anyone else. And one of the best things and the reasons that we rely on this method is if you've ever seen a quote from something and then you actually got hands on the original thing that it came from and you read it in context and you realize the context completely changed the intention of whoever the heck quoted it out as, right there is a prime example why you should always go to the actual metric data yourself and interpret it like in its raw form if possible. You should.
When you do the research research component, you're saying you can go through 139 and 30 minutes even from the research research component? Yeah. That's fantastic. So the only thing that takes you super long is going through the earnings reports, right? For the most part because like once you get in this list, you can click on five right now.
And guys like what he just gave you could probably be worth like thousands of dollars in a course. Like no joke. Like I found six like within seconds.
Then you literally in Schwab, you can compare. Okay. So in Schwab, what it gives you is it pops this 139 up and you can actually click a box and then at the very bottom, any of the ones you clicked.
You can go up to five, you then can compare up to five. And you can compare them. You just click the compare button.
So that's really cool. The actual research, it doesn't take very long. Knowing what to put in.
You need to know what you're looking for. You need to know what to put in. And I think coming up with the actual screening metrics is the hard part.
Well, that's why like we've given them. Because how long did it take you to come down up with all like this specific thing? Years. Years.
It probably took three years to come up with this screener with these metrics. And the data points I look for when I do individual like deep dive research and stuff, it took years. And if that was a little fast for you guys, I am going to do like a quick summary of what we look at in the show notes.
So you can just be like bullet like checklist. Took years and years. I mean, it was enjoyable, so I don't care.
But like I can see how it could be painstaking for other people. Yeah, especially if this isn't. Like you can compare up to five, then I'll pull it up.
And they'll like give you, you can find the profit margin, the revenue and stuff. And then you compare it to five. So it's Schwab's by hands down the best research of all the brokerages.
So if you're big into research, we definitely recommend Schwab. But we will do a comparison of different brokerages in another episode. But you'll be amazed if you use what I just gave you, you'll be amazed what you can find.
And they're like good company. Like I said, Bristol-Meyer, Chevron. Aren't those in the dog of the Dow? Chevron was, right? Chevron is.
Okay, that's why that's. Philip Morris. Altria.
UPS. Yeah. Black Hills Utility.
LTC. Guild. Like you'd be amazed at what that list will bring up, like quality companies.
That you don't really hear about being pushed because they're kind of flying under the radar. The way to get the quality companies literally was the five-year dividend growth. And then I had to drop that down to one to whatever it was, one to 15%.
And I had to drop the yield down to four to six. To find the sweet spot. I didn't have the four to six before.
And this list wouldn't have had any of the really good ones. Bristol-Meyer wouldn't be on there. Chevron wouldn't be on there.
BTI would be. Philip Morris wouldn't. UPS wouldn't.
Black Hills wouldn't. Guild wouldn't. Like it would have literally made this list still decent, but it wouldn't have been awesome.
Oh, and I know the Black Hills one's one of our favorites. Love it. It's been growing its dividend for like 60 years straight.
It's grown at like 6% the last five years. It's right around, like it's low. I think it's actually lower than that now.
I think it's probably like 9% above its 52-week low. And its PE is super low and it yields 5%. So you get in at 5% knowing that it's going to grow probably 40%.
So you're getting a 40% price appreciation, collecting 6% dividend growth every year on top of the 5%. So like by the time it gets back up to where it is, your actual dividend yield is going to be 8% or 9% on a utility. So it's awesome.
That's freaking shazam. I'm just saying like this makes everything so much easier. So much easier.
And then what we talked about- It's like I know when I first started, I was overwhelmed and I'm a nerd. So I can't imagine what an average person goes through. I was just going to say the overwhelming component.
That is literally how you can get rid of needing to talk or listen to 10 talking heads. It's like getting rid of the uncertainties. It's getting rid of the extraneous crap.
It is narrowing things down to a manageable level. Like I don't know if you know anything about like starting stuff. I love- I can tell you that I've subscribed to hundreds of people and I've paid for probably 20 different things and I've never not once have they told me what they screen for.
Yeah, they like to keep their stuff proprietary and we're not trying to do that. We're literally trying to teach you the method. Teach you the skills so that- You can go fishing for yourself.
You don't need to listen to me like four years from now. We're hoping at that point you guys can figure random stuff out and feed it into us because- Although we will have a different podcast at that point about different things. You might still want to listen but this is actually quite simple.
Once you got the screener information now and then once you actually figure out how to do the research with like the revenue and the debt and everything it's simple. You're probably driving or doing other stuff and it's hard to consume. So if you guys want this in video form just like- Yeah, we could make like a video where I could show you exactly what to click on in Schwab.
Go into the show notes or shoot us an email and click on one of the ways to contact us. Leave a comment and let us know. We will totally do that because I'm not sure I would have been able to get as much out of this without being able to see it myself.
That's the screener. That's the most important part of the last three things we discussed. And it's the shortest episode that we did.
It's the easiest. But using this screener I came up with a list of five- Five what? Five best potential investments right there. It was in the email.
I actually composed an email- A couple weeks back. A couple weeks back that had all this in it and it brought up the five best. Altria, UPS, OCSL and NEWT are the five best based on the metrics that I would actually put money into right now.
Well, at that point it was the 13th. As of two weeks ago. But I know the markets went up a lot.
But like the beauty of it is if- Say you have a week where the stock market goes up like eight percent. Well then on Friday just do the screener and it'll bring up everything that's undervalued still so you don't even have to worry. Like you don't even have to worry about if the market shoots up because it'll just bump off the ones that are like closer to their 52-week high.
The ones the PE went up too much. It'll look like it's beautiful. Yes.
Every time you do this it'll literally screen for the real-time data. It's beauty. It actually is beautiful.
It'll show you which ones like you'll see which ones you want to turn your drips off in and then take that cash and then funnel it in. Do the screening metric. Find the ones that are low.
Once you do it and you see how beautiful it is you'll be like, God that's beautiful. It really is. If this takes away your analysis paralysis and overwhelm like that in itself is totally worth it.
Beautiful. And then that's it for this week. That's the short and sweet.
Next week I forget where I think we're doing. Oh let me look. My grandpa just died.
He raised me when I was 12 to 18. Well him and my grandma but like he raised me. Made me a man.
So like I have to say a few things about him. Okay. Next week's Gramps one.
The next two are my tribute to my grandpa and it's going to have some information and then I have one but then the episode after that's going to be a dividend to kings, aristocrats, achievers, contenders, all that. We'll probably go over the list of what makes what each category and the grandpa episode is going to be really important for those of you who are afraid of outliving your retirement in your retirement years. Which is ironic because I literally I swear to God the fuckers are monitoring my email.
I literally this email went out last week and I just got things yesterday that had the exact same information in it from I forget who it was. Oh you think people are stalking your email? I think they're stalking my email because like it can't be a coincidence every time we discuss something in the podcast or I send the email out the next week I get a publication that I subscribe to telling me the exact same thing that I already know because I already told you guys that. That's actually really funny.
It literally is about outliving your retirement how men live longer less than women do men it's like eight years they outlive their retirement by women's like 18. And Tim's grandfather lived to be 95 so that's well beyond. He retired at 65 from the state of Colorado had a pension and like just a quick spoiler what they're what they're encountering now with pensions is the pension was originally established for 10 years beyond retirement they figured you'd die before but now they're actually people who live in like 20 to 30 to 40 years beyond their retirement age and the pensions are like they have their freaking out.
That's why the pensions have actually gone away and I wanted the deep dig into that one but yeah so that's what's coming up we're going to talk about. It's fascinating if you think about it because I think we're all going to live like if you have no stress because your finances are in order and your finances in order so you can afford like the good food that you need to or the vitamins you need to or you could pay for like a whatever of supplements you need or whatever holy experience you need whatever if you have the money to pay for that you're going to easily outlive your pension. Totally absolutely.
Social security there's no guarantee social security to be around so if that's what you're relying on you could be okay we don't know yeah you just don't know because the boomers are going to take a lot of security and then you get social security and then you have what's the gen x then gen x will take up the rest of it so if you're a millennial or a gen z I would not even rely on social security at all. That would be me. Because they've done research and like I'll go over the exact details but like a majority of boomers don't have enough money for their retirement so they're relying on social security and gen Xers have nowhere near enough for their retirement with their 401k and their pensions so they're going to take the rest of social security.
Social security I wouldn't rely on that. So that'll be a really important episode for any of you talking about retirement. So that'll be next week.
So that's why we do the income investing that way because the income is generated every month or every quarter depending on what you invest in dividend wise and then that's what you live off of your principal stays the same or goes up your principal is the same goes up goes down whatever but your dividends what you live off of is the income you're making from your money. That is the goal we want to set it up so that it's indefinite doesn't matter when you kick off. And that's the beauty of it because we when you're getting ready to kick off you can I think you can will your kids your brokerage account your stocks.
We will have to do research on that to confirm. I'm pretty sure you can. But I'm pretty sure there's some way even if you're giving them the seed money and the plan to invest the same way.
You give them the stocks. Yeah that'd be really cool. You can will them the stocks.
I know you can I know they can I just don't know what the procedure is. Apparently death planning is next week's episode. Have to grandpa's died it was horrible.
The takeaway for today our call to action for you today is to go into your brokerage or into Yahoo Finance run the screener with the metrics do a little bit of research see what you come up with and start to feel a little more it's going to differ brokerage to brokerage that's how you feel with the overwhelm and it's going to be like if you go into Yahoo Finance they don't have the exact same metrics so you're going to have to tinker with it like you'd be able to do the PE but I don't think the PE to like 20 or less I think it's like 5 to 10 or 10 like there's different like get it in the ballpark it's just a starting point but those are the four main points are dividend yield, price to earnings, 52-week low, and five-year dividend growth. Those are the four main points. Yes sir you guys got this.
We will see you in next week's episode.