PPC Ian Dividend Investing Update (Q3 Income Growth & Future Plans)

Hey friends, I'm back. 10.78%. That is my yearover-year dividend income growth. Not bad. We just concluded Q3. We're headed into Q4. I ran a lot of calculations on my dividend stock portfolio. This is my end of Q3, early Q4 update. And when I ran my calculations year-over-year, I'm trending at 10.78% income growth. And while I'm really proud of that number, it is coming in short of my 12% goal. Actually, my goal was 12 to 13% and I'm falling short of that goal. So, in the video today, I want to share with all of you my PPC dividend stock portfolio update. I want to go through what's working for me, what's not working as well, where I see opportunity. I also want to go through some positions that I'm purchasing right now. Before we get started, in terms of a friendly disclaimer, today's video is not investment advice. I'm not a licensed financial adviser. I'm just sharing my journey here on YouTube for fun and entertainment. Before you go out and invest in the stock market or anything else, please consult your licensed financial adviser first. As always, I have all my disclosures and disclaimers in the description below. Now, I want to get started with the headline. Check it out on the screen in front of you right now. So, this is my first slide. And the headline is really what I just said, 10.78% income growth yearoveryear. Now, it's coming in short of my goal, but still, I'm quite proud of that. That's not a bad number at all. In fact, it's better than where I thought I was trending, and so it was a little bit of a surprise. So, the levers that I am using to grow my income year-over-year are dividend reinvestment. My average starting portfolio yield right now is about 3.5%. We're going to get to this in a minute later, but that is up from my last update. And the reason it's up is a lot of stocks were overvalued and now they're kind of bouncing back down to reality. Also because of the higher treasury yields. But long story short, I am reinvesting dividends around my portfolio average. I'm generally speaking reinvesting where my portfolio average is at and that's at 3 and a half%. And so lever number one that I'm using to grow my dividend income year-over-year is that dividend reinvestment which is about 3.5%. Now I'm taking some dividends off the table to pay bills. But overall where I do selectively reinvest, I can go a little bit above 3 and 12%. That's how I'm hitting my average. But let's keep going. As you can see on the screen in front of you right now, the second lever that I'm using to increase my income from dividends year-over-year is dividend increases. And based on the 5-year CAGR compound average annual growth rate of the companies that I own, all 45 of them, I'm seeing about 4 and a.5% dividend increase per year on average. And I believe that is a somewhat sustainable number. So that is my largest lever. I'm really relying on my mature portfolio here of dividend increases. If the companies slow down their dividend increases or even cut dividends, I'll get to this in a minute, that lever could shrink and that is a potential risk. But so far so good. That lever is doing quite a bit for me. Now the third lever that I flex in my portfolio is net new capital and I am relying on about 4% of the total of the 12% goal coming from net new capital. Net new capital I only have so much money to deploy. I face in my life inflation just like all of you are facing. Also I have a family of four. we have high living expenses and so finding net new capital to deploy and to drive 4% of my income growth that is the lever where I'm struggling the most with these days and so to kind of make up for it I have been venturing into some higher yielding stocks although those contain more risk I'm going to talk about that in a minute now thankfully I'm getting a little bit more on my net new capital deployed these days because some of core stocks that are of very high quality like PepsiCo are now yielding over 4% because the stocks have corrected quite a bit for a number of reasons which I'll get into later. Those are my three traditional levers. I'm coming in short on the third lever and that's why I'm trending at about 10.78% versus the 12%. But hey, we're still in Q3. Let's see what I can do in Q4. Q4 oftentimes is my strongest quarter of the year and I can make up for some of this fall behind in Q4 and that's what I'm planning to do but it will not be easy. Now as you can see on the screen in front of you right now I want to keep going. The next thing I want to share is just my highlevel challenge. I have a mature portfolio. The net new capital it can only do so much and I only have so much of it. Um and so that's that's the challenge I face these days. And of course the backdrop is we are seeing in general in our world slower dividend growth rates of the types of stocks that I own at least. So I want to keep going. Before I do though, if you're excited to see me here today, please go ahead and click the like button. It means the world to me. I have missed all of you. I try to make the videos a little longer these days because I'm doing the videos a little bit less frequently. And so I hope you enjoy this one and you stick around all the way to the end. Now, as you can see in front of you right now, the next one I want to share is um what I'm doing. And so should I stay the course or should I optimize within the portfolio? So I spent a lot of time talking about the three levers that I flex. There's a fourth lever which is time in the market, but I set kind of an arbitrary constraint that I want to reach my goals within 5 years. And so I took that off the table. Of course, I have that fourth lever always of time where I could extend more years. Of course, the compounding works more. But there's really a fifth lever that I want to talk about today, which is optimization within the portfolio. And so, I always have this kind of debate going on in my mind. Should I stay the course or optimize within the portfolio? Let's talk about that. So, first thing I want to talk about are some setbacks. So, I talked about this, I believe, in my last video, but the Campbell company cut the dividend by 36%. Could there be more dividend cuts coming around the corner? Some stocks here I'm sharing that could face potential dividend cuts that I have on my watch list for that are General Mills, ticker GIS, Clorox Company, CLX, and even Universal, ticker UVV. Those ones are on my watch list here for potential dividend cuts just because the payout ratios are so high. Now, something else that was a setback over the last quarter or so was Honeywell. I had very very high hopes for Honeywell and I still do. But um basically United Technologies when they split that all out that was one of the best performing assets that I own. I've owned it forever for a long time. It's done very well for me. I believe that Honeywell was modeling some of their breakups after United Technologies and United Technologies became Rathon Technologies Carrier and Otis have done very well for me. But long story short, one of the things that surprised me and some other dividend investors who I've spoken with is what is going on with the dividend? They almost used this opportunity of the split up to take a step back. And so Honeywell, that one, the dividend went down. Honeywell Aerospace, no dividend. No plans for one as of this time. Solstice, which is a company I like because it gives a lot of pure play exposure to semiconductors and to technology. That one pays a dividend, but it's a very low, only about half a percent. And so that was a step back because I own a position in Honeywell when it was a conglomerate and it had all of them combined. The yield was maybe around a good 2 and a.5%. And now I've got three components that are all yielding quite a bit less or nothing as compared to the parent company before the split up. That is something that's on my mind. So that was a setback. Now check it out on the screen in front of you right now. I want to keep going. So there were some leaps forward as well. And when I say setback, by the way, on Honeywell, it wasn't that the company necessarily faced a setback fundamentally. It's that the income they are providing to shareholders faced a setback. I had some leaps forward though. One of the ones I'm so excited to share is this SCHD. It's now my number four top position. It leaped up from number six just a quarter ago. And so that one mostly grew organically over the last quarter. It's been doing very well. There were a lot of skeptics when I was buying it at a 4% yield or higher. And now the skeptics, I don't see them as much because it's done so well. And this ETF now has a huge massive market capitalization or NAV. That's around $112 billion. And that's a reflection of just how much interest there is in this ETF that has performed so well. Another leap forward was Philip Morris coming through with the 8.8% dividend increase. Boy, that does a lot for me because it's one of my largest positions. Another leap forward is I took a small ancillary position in Vichy. I discussed this in my last video, which I'll link to in the pin comment below. Um, I actually did go ahead and I initiated a position and then I added a little bit more and it is a starting yield right now of about 8%. That does a lot for me on the limited capital that I do have to deploy. If I can deploy some of it at 8%, it does a lot for me. Anyway, I have two trains of thought in my mind right now. Should I stay the course or optimize? And so, could there be this fifth lever, if you will, and that's portfolio optimization. One idea is I have Honeywell Aerospace yielding nothing. I have this one MIC Magnum Company. It was a spin-off from Unilver. It is a um ice cream company and they don't pay a dividend yet, but they probably will sometime soon. That one they have plans to pay a dividend. But anyway, why don't I just sell Honeywell Aerospace and MIC and then redeploy into SCHY, for example. I'll talk more about SCHY later. I like it quite a bit right now because the starting yield is higher than SCHDs and the year-over-year dividend growth is quite a bit higher than SCHDs. Although there's less track record on SCHY, so it could just be an anomaly. Anyway, if I did redeploy that capital into SCHY, I could drive half a percent income growth overnight in my portfolio. And half a percent gets me quite a bit closer to my 12% goal. So that's my one train of thought. That's called optimization within the portfolio. Something I've not done historically. You guys know me. How many of you have been here since the early days? You know, PPC and likes to buy and hold forever, more or less. Of course, I sell stocks from time to time. I've discussed many of those here on the channel over the years and the rationale behind that. But in general, I don't like to sell. And the reason I don't like to sell is that bar of soap analogy. The more I handle the portfolio, the less I have. If I basically sell Honeywell Aerospace, could the stock skyrocket the next day? It might. It just might do that. And so that's really the concern of selling these types of highquality positions. MIC, it's going to pay a dividend anyway. And so could could it be a mistake making these optimizations or not? But that is the fifth lever that's in my mind these days as I am a little bit behind my goal. Just give me a little more boost to reach that 12%. Now, the problem with lever number five is it has diminishing returns. Kind of like net new capital. When I just started out as a dividend investor and my portfolio was really small, net new capital could grow my dividends quite a bit. Now that I have a mature portfolio that's been compounding for a very long time, net new capital thrown into the portfolio, it can only do so much because it's just not that much in scale of the portfolio. So, it has diminishing returns. this lever five, this optimization, I also think it has diminishing returns because there's only so much optimization to be done. And if I do optimize, it's like the bar of soap. Could it be to my detriment over the long run? Because Honeywell Aerospace, I believe, could be a great dividend growth stock of the future, and I lack a lot of positioning in my portfolio for those future dividend growth stocks. And so, that's the conundrum I face. Put in the comments below, what do you think? Of course, no advice, but I'd be curious. Hey, if you were in my shoes, what would you do in this situation? Optimize or leave it as is. I'd be curious to hear everyone's thoughts in the comments. But I'm kind of on the fence. I'll probably just let it be for now because I can always flex lever 5 later if I had to. And I think I can make up for some of this slack from my 12% goal in Q4. I think I can. And I'll get more to that in a minute when I share some of the stocks and ETFs that I'm buying right now. But I want to keep going. I have a lot of ground to cover today. So the next slide that I want to share in front of you right now, check it out. This one really goes into DJI for the win. What happened to my portfolio at a high level over the last quarter? Now, before I get into this, I'll share a link in the pin comment below, but on my corner Patreon tier, I'm going to be sharing my complete portfolio percentage allocation to each position. And it gives a much deeper overview into the 45 positions, the percentage allocation to each in that on corner Patreon. But I want to share just the high level here on YouTube. And so, DGI for the win. One thing I noticed over the last quarter is my portfolio value was down, but my dividend income was up. Now, my portfolio value was actually down versus the prior quarter by 6.39%. That might not sound like a huge percentage, but in dollar terms, it was a little frightening when I looked at that. I'm like, wow, it was down a lot. Now, thankfully, the portfolio is doing what it's supposed to, and the income was up 2.64% um quarter um over quarter. And I feel that the 2.6 64% was was a nice leap forward. Again, it's tracking a little bit below goals, but a nice leap forward for Q3, knowing that Q4 sometimes can be very strong for me. And so, if I compare though to the last year portfolio value is up nearly 13%, 12.99%. That is an illustration that DGI dividend growth investing can offer total returns in addition to income growth. There is equity growth in there. It doesn't do much for me because I don't plan to sell, but it gives me options. I like that. Now, my portfolio income, as I already mentioned many, many times, is up 10.78% year-over-year. And so, I have some takeaways here. What is going on over this last quarter? I think with dividend growth stocks, valuations got ahead of themselves. Now, my current yield when I did this portfolio update uh last time was 3.22%. My current yield now is 3.53%. 3.53 for me is more of a classical range where I would expect my portfolio to be. When I did this update last quarter and it was down at like 3.22%, I knew that the equity prices had gotten a bit ahead of themselves. And so I think what happened over this last quarter is a few things. One, the stock valuations are getting back to reality. They're coming back to reality. Two, something that I think is happening is we are in a cycle right now where the Treasury rates are going up, the 10-year Treasury is going up, the cost of uh financing is going up. And so this does a few things. It gives investors more options. They can sell high quality dividend stocks and park money in treasuries to get yield over there. And so the market can recalibrate as a result. But the other thing is the cost of financing for companies is higher. So margins can get squeezed and when margins get squeezed stocks are a reflection of their earning power and when earning power goes down stock prices and valuations can go down. So we see a bunch of that and as you can see on the screen in front of you right now I think we're seeing a trend back to reality. And so at the bottom of the screen here I have a bunch of points on what I just mentioned. But what I also want to share is I'm a DJI investor for a reason. If I was just relying on portfolio value, it'd be kind of frustrating to see that it's down 6.39% on the quarter, but I don't. I rely on the income generated and seeing that it's up 2.64%. I'm quite happy with that. Now, I would say overall portfolio income growth is slowing. So, I have mentioned this in the video already, but I have to push very, very hard to reach my goals. And an alternative is I could relax the time constraint which is lever four. Or I could even go ahead and introduce a fifth lever which is portfolio optimization. Now I prefer lower stock prices because I can deploy capital more effectively, more efficiently. I'm going to talk about this in a minute at the end of the video. There's three stocks in particular, well two stocks, one ETF that I'm buying right now. I want to talk about those because I think they're trading at value levels and I think I can get more for my money these days because the prices have fallen. But before I do that, I want to do something else. I want to share with all of you my top 10 positions that I own right now. And I want to share with you the uh category breakdown as well. I like to do this in the updates just cuz you want to see a flavor of what I'm doing. Check it out on the screen in front of you right now. So, what you see are the top 10 positions 1 through 10. And Johnson and Johnson is number one. It has been for a while. I've shared this story over on my backyard and corner Patreon tiers. And I want to share the story with all of you right now because this is very important. J&J, it's almost 11% of my portfolio. How did it get there? It's always been a top position for me. But one thing about J&J that is so fascinating is over the last few years, it's done great. last year or two done great. But before then, there were a number of years where it went nowhere. It was on sale. It was trading on discount and it was there for a very long time. If you were on my backyard or corner Patreon tiers, you'd see my uh trades and my updates on what I'm doing, my blog posts, and I was basically buying J&J almost every week for a very, very, very long time. And all those bricks, brick by brick by brick that I bought, it added up. And when J&J recovered quite aggressively in share price over the last few years, it just catapulted in size. It's kind of like that compressed spring that sprang open. And basically, it is by far my largest position because of the diligence that I had to buy this worldclass company, small tranches, week in and week out over the years when it was on sale. And I bring up this example with all of you, not to brag, but to share a strategy that historically works for me. One thing that has historically worked for me is core stocks. Core stocks like J&J when I see them trading on discount, buying them brick by brick, and having patience with them. Now, there are two core stocks that are on sale right now. I'm going to get to them later, but one of them is PepsiCo. The other is McDonald's. I see them on sale right now. I'm starting to buy brick by brick by brick week in and week out. And could they have a similar trajectory to J&J when I look back in time 10, 15 years from now? I don't know. But I have a suspicion that we haven't seen the all-time high for McDonald's. We haven't seen the all-time high for PepsiCo. At some point in the future, I don't know when, they will reach new all-time highs. most likely in my humble opinion, not financial advice, just sharing my personal opinion for fun and entertainment, but that's the mindset I have as a dividend investor. Now, to be fair, I think there's more upside optionality at J&J because I think AI is going to really help with innovations in the medical space. And so, I think there's more upside optionality at J&J. But nonetheless, I think there is upside with McDonald's, which has the world's greatest real estate portfolio in my opinion, and also PepsiCo, which is one of the greatest snack food and beverage companies in our world as well. But anyway, fun story and aside there on J&J and how it became so large in my portfolio. But as you can see on the screen in front of you right now, sometimes I talk about my ancillary positions like Vichchi. And I think a lot of people think that these ancillary positions are very large in my portfolio. But in fact, if you look here at my top 10, 61% of my money is just in these 10 and 60% of my dividend income comes from them as well. I'm not going to go through each. I want to highlight again that number four is now CHD. I hope it will make number one within the next say 3 years. That is the goal for SCHD in my portfolio. But to contend with J&J, it's going to have to do a lot of the heavy lifting on its own. Net new capital will only do so much. And you can see PepsiCo and McDonald's, they're still on this list. Caterpillar, which is a tech investment of sorts, uh, given that it's fueling the AI revolution, staying on there at a solid number 10. That is a stock I invested very little into and it's just done so well for me over the years. Another reason I want to highlight these top 10. So I receive some critique on my channel from time to time. Are these ancillary positions really providing value or not? Some of them are in a very big way like Marriott Vacations Worldwide has I believe doubled since I bought it. I'll have to look at that for a future video. But some of my ancillary positions have not fared so well. So I'll have to do a complete standalone video on the ancillary positions. But I would say in general they're providing a lot of value in the portfolio. And one of the ways I say that is at one point Caterpillar was an ancillary position. I actually invested a very low amount of money into this stock a very long time ago, but because it has done so well over the years and compounded and compounded, it's not ancillary anymore. Now it's number 10. And so that is really the upside optionality concept as well and why I like to own ancillary positions in the portfolio. But I want to keep going. I have a lot to cover today. So the next one I want to share as you can see on the screen in front of you right now is my category breakdown. Where am I from a category standpoint? So this chart just doesn't change that much but you can see just to share sin stocks. They still power and carry the portfolio almost 30% of my dividend income. I don't know if this is ever going to change. It's really interesting because again the net new capital can only do so much. The sin stocks just keep performing year in and year out. They've done quite well, especially from a dividend income standpoint. And look at that huge PM increase that I recently had and that many of you watching probably experienced as well. But there's the breakdown. And I would say if I were to critique this portfolio, I have a very low waiting on technology. And this goes back to ancillary positions. I own Alphabet and Meta. Both have done well for me. Alphabet has done exceptionally well. That's an ancillary position. They don't all work out quite as well. I have my winners. I have my um losers in the portfolio just as any ETF or index would have. But I'm sure glad I have those ancillary positions in technology because I want some exposure at least to our future. And Alphabet has been one that has performed so well for me. But I would be curious for those of you watching at home, how does your portfolio look when you break it down by category? Does it look like mine or something completely different? I would be really curious to understand. And so that's kind of my portfolio update from Q3. But what I want to do now in the next part of the video is I want to share three positions I'm adding right now. And I want to share some insights on two of them that I don't think anyone is sharing out there. And I think they're really important to understand. So let's do it. Check it out on the screen in front of you right now. The first position that I want to go through is PepsiCo. And so I just added PepsiCo yesterday. And this is one of my top 10 positions. And right now it's trading back at 2020 levels. It's down 26% 26.7% from the 52- week high. And it's trading at a forward PE in the 14s. I didn't think I'd see this for PepsiCo. Such a low forward PE. I love it. Dividend yield is 4.71%. I highlight that because here's the deal. Net new capital, if I put it into something like this, when my portfolio average is only about 3.5%, I can get more for my money than my portfolio average by skewing towards a core stock, which I love, which I don't mind building. I love this. I could see myself making PepsiCo a regular rotation stock that I'm adding as long as it's at these levels. Payout ratio at 69% um is a little high, but I don't think we're going to see a dividend cut for this company. They're growing the dividend by 6.6% per year on average, but I think that will slow quite a bit. Now, here's what I hear over on X. I'll link in my pin comment below. All my socials are there. I'm over on X. Thank you to everyone who follows me on X. I now have over 30,000 followers. It's hard to believe. I really appreciate it. It's grown for me recently. So, thanks to all of you. Now, on X, one of the things I see all the time is a discussion between Coca-Cola and PepsiCo. So many people are quick to say these days, Coca-Cola, it's a superior company. Look how well Coca-Cola has done. Everyone's buying their products. They're doing so well. Whereas PepsiCo, it's struggling. No one's buying their products anymore. That's the narrative. And I think the narrative is that way because we see PepsiCo's share price go down, Coca-Cas go up. By the way, I own both. I love both companies. I'm long Coca-Cola. I'm proud to see it reach these new all-time highs. But let's take a step back. put that discourse aside and let's just look at the numbers. Check it out on the screen. So, I did an analysis here and I have the comparable here to Coca-Cola. So, in the middle column, that's just where Coca-Cola's at. Now, it's at $85 and change. It's just off the 52- week high, um, which I believe is an all-time high, and it's trading at a forward PE that is quite expensive. It's almost 26 this year, 24 next year. You can see the starting yield is really low, 2.48%. Payout ratio is a little lower than Pepsi's, but it's still high, 64%. They're growing the dividends slower than Pepsi's at 4.8% per year on average. That being said, I would say both going forward are going to be slow growth. Here's the deal. It's just a function of is Coca-Cola really doing that much better than Pepsi's? Maybe they're growing earnings a little quicker, but does it warrant this discrepancy in valuation? This is a crazy discrepancy. We're talking about a PE of 26 versus a PE of 14.71. Let's do a what if analysis. If you look in the third column, I just adjust it. What if Coca-Cola was valued the same as Pepsi at a 14.71 PE? What if the market did that? It could do that. Well, it would have to crater 47.5% in share price. And what would happen is the PE this year would be 14.71 just like Pepsi. next year would dip below Pepsis cuz Coca-Cola is growing a little quicker and the dividend yield would kind of be in the ballpark of Pepsi's at 4.37%. And it would have a market cap a little bit bigger than Pepsis, but not too much at $28 billion. But most importantly, the most important thing I want to highlight is if Coca-Cola were trading at the same PE ratio as Pepsi, it would be back to 2020 levels, too. So, there's this narrative out there. It's all over for Pepsi. Stock price has gone down. It's at 2020 levels. And sure, the fundamentals, maybe they're not quite as good as Coca-Cola's here. But if the market woke up and said, "Hey, wait a minute. Coca-Cola, people are not going to consume as many beverages because of the GLP ones." Just like people are worried about PepsiCo, people not consuming as many snacks, which is a big part of their business, much bigger than beverages. Um, they're not going to consume it. Let's say the market gave Coca-Cola the low PE like it gave Pepsi, Coca-Cola would be back at those 2020 levels as well. And so I can tell all of you share prices when they go up or down can skew the narrative. But if we take a step back, we just look at the numbers, we look at them rationally. What all of these numbers tell me is the market has assigned a very expensive PE to Coca-Cola, probably more than it deserves, but I'm fine with it. I own Coca-Cola and I believe the market has prescribed to PepsiCo a lower PE than it deserves. It's lumping it in with all of CPG food and it's trading at a discount. That's all it is in my opinion. Is one company better than the other just because of share price? I don't think so personally. Maybe Coca-Cola is growing a little quicker now. But if you actually go back in time, and I just shared a big blog post on my backyard and corner uh Patreon tears about this, there was a large period in time where Coca-Cola went nowhere from like the late 90s through like 2013. It um went down, plateaued, went back up. Um it went nowhere. And so Coca-Cola has had its seasons of challenge as well. And so many people are quick to forget that based on current market trends. That's why I want to bring it back to the numbers. That's why I want to buy when high quality core stocks are on sale and um when the starting yields are good. Now, I want to keep going. Check it out on the screen. The next one, I'm going to go quicker on this one. This one I don't have as much to say, but it's McDonald's. When a core stock is on sale, the epiphany that I had, like I had with J&J, is I'm just going to buy brick by brick. I think there's upside optionality with McDonald's because they're a forwardthinking techfocused company and they've implemented technology. They have a worldclass real estate portfolio, maybe the best. Um, they have this franchise franchisee model which works really well. We all need to eat. And I think they'll be fine. I don't think it's trading at a huge discount here, if any discount. The PE this year is an 18, next year's a high high 16s. Maybe if the PE got down to the 15s or 14s, it'd be at a discount. I think here it's kind of a fair price. It probably just got ahead of itself. That being said, I like it at this valuation. If it heads lower, I'll like it even more. I'm buying brick by brick. It's just one of those core stocks that's in my heavy rotation right now. Am I against ancillary positions? No. I just bought Vichy. There's some other ancillaries I'll probably add to here and there, but when the core stocks like this go on sale, it just makes my life easy focusing on the core stocks. So, the next one I want to go into is an ETF that I really love. It's the close relative of SCHD. It's CHY, the international version of SCHD. I've been buying this one. It's been growing in size. It went up like 10 spots on my portfolio. Um, when I did the analysis, but it still has a long way to go. It's a very much an ancillary position. Speaking of ancillary positions, SCHD when I first bought it was an ancillary position, but I kept adding and adding and adding, and now it kept growing. It kept doing well. I bought it at discount. It's number four. And so that's another case um example in favor of ancillary. I would say SCHD has done quite a bit for my portfolio as has Caterpillar. And both of these started out as really ancillary positions. And SCHD it's a more recent ad. I only started buying that thing um not that long ago. Same with SCHY. It's going to grow. It's going to go from ancillary to top 10 at some point. But anyway, as you can see on the screen, SCHY, I'm adding it. I want to share something here that no one talks about with this. So, one, um, just going back to 2025 taxes, not tax advice, not a licensed tax advisor. When I received my tax paperwork for SCHY, the lion share of the income that came through was treated as qualified. That was the epiphany for me and why I started going bigger in this in 2026. And I'm going to keep buying this thing aggressively. And I'm tempted. I'm tempted just to sell some and recalibrate the portfolio and just kind of move some more money into SCHY. Maybe I'll do it. We'll see. But anyway, it's 6% off the 52- week high. What I love about SCHY is the dividend growth rate. When we look at this, I'm doing a SCHY versus CHD comparison here on this screen. On the left is SCHY. On the right is SCHD. And what you can see is the dividend just grew year-over-year. The last one that was announced with SCHY, it's up 26.7% year-over-year. When I look at the year-over-year delta for SCHY, it's actually growing the dividend distribution by 14.2% year-over-year. This did not get any press. I surfaced this on X in a post and the post did very well. No one talks about SCHY. No one's talking about this, but year-over-year it grew the dividend really fast. And because it did that, the starting yield on SCHY right now is 3.67%. They're starting to gain some recognition in the market and that's reflected in the market cap being up to 2.61 billion, but that's a lot smaller than the market cap or the NAV NAV at SCD, which is 112 billion. What I want to share though with SCHY that's very important is the dividends have jumped around quite a bit over the years and one year year-over-year doesn't make a trend. It's a step in the right direction, but this may not be a trend and I have to keep that in mind. Needless to say though, I feel very compelled to add to SCHY here because it is a higher starting yield. I have a perception that the dividends could grow faster than SCHDs. We'll see if this trend holds up, but more than anything, it gives me broad international diversification, which I just lack and I enjoy and I want. Now, on the right hand side of the screen, SCHD, my number four largest position that I hold, it is slightly off the 52- week high by about 7%. And let's look below. I did the same comparison for dividends year-over-year with SCHD. And year-over-year, it's only managed to grow the dividends by 2.2%. But again, that's just one year. One year doesn't make or break a trend. But the starting yield is also lower at 3.2%. I remember when I was buying this over 4% and so I'm not as compelled to add to SCHD right now as I am to SCHY. SCHD is my number four position. Organically, I'd like to see it get up to number one, but I'll I'll throw more money at it at some point, just probably when it is trading on a deeper discount than it is now. But what I'm trying to share on this slide is the realization that SCY, the international version of SCD is doing really well. It has a high starting yield and it's growing its dividend year-over-year quite aggressively. And so that is my big portfolio update for all of you. End of Q3 as we head into Q4. Put in the comments below. What do you think? Uh I would love to hear it. And as always before we go in terms of a friendly disclaimer, today's video is not investment advice. I'm not a licensed financial adviser. I'm just sharing my journey for fun and entertainment. It's possible to lose money in the stock market. Please consult with your licensed financial adviser before making any financial decisions. As always, I have all my disclosures, disclaimers in the description below. In terms of a full disclosure, I own the stocks and ETFs mentioned today. This is going to be a long list, everyone. I also have it in the description below. But in terms of full disclosure, I am long Campbell's company, ticker CPB. General Mills, ticker GIS. I'm long Clorox Company, ticker CLX. Solstice Advanced Materials, ticker Sols. Honeywell, ticker H. I'm also long Honeywell Aerospace, H O N A. I'm long the ETF SHD. I'm long Philip Morris, ticker PM. I'm long the REIT, Vichy Properties, ticker V ICI. I'm long the Magnum Company, ticker MIC. I'm also long the ETF CHY. I'm long Johnson and Johnson's, ticker J&J. I'm long Starbucks, ticker SBUX. I'm also long Altria, ticker M O. Rathon Technologies, ticker RTX. British American, ticker BTI. PepsiCo, ticker PEP. McDonald's, ticker MCD. I am long Caterpillar, ticker C A T. I'm long Universal Company, ticker U VV. I'm long Marriott, Vacations Worldwide, ticker VAC, Meta, ticker MEA. Google or Alphabet, ticker G O G L. I'm also long Otis, ticker O T I S, and Carrier, ticker C A R. Last, I am also long treasuries. I own those positions in my personal dividend stock portfolio. Thank you for tuning in today. Please subscribe to my channel if you enjoyed the video. I can't wait to see you in the comments section below. And I'll see you all in the next dividend stock investing video.