How To Invest $5000 (Investing $5000 In The Stock Market)

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What if I had $5000 to invest in the stock market? What if I was just starting out, all over again, and wanted to invest my first $5000 in stocks? Today's video discusses this very hypothetical question, from a dividend growth investing perspective. Learn how I would personally invest five thousand dollars for passive income and cash flow.

In particular, I would:

(1) Buy three stocks, with roughly equal investments in each. Focus on three sectors: consumer non-cyclical food and beverage, consumer non-cyclical household products, and healthcare (pharmaceutical, medical devices, and household products). I love these sectors for the long-term because everyone needs these items in both good and bad economies.

(2) Leverage dividend reinvestment plans (or DRIPs) for at least two of the three stocks. Open a low-cost brokerage account with dividend reinvestment for the third stock, if a no fee (or low fee) DRIP did not exist.

(3) Make lump sum investments, however stagger my investments one m...

Channel:  ppcian
Topics:  Society
Yourmom Hello 

Hey Ian, how can you make a video in the future discussing specifically drips. More specifically how to invest in them and how to keep track of all the paper work. Investing through a broker is easier keeping track of all your investments and alot less paper work. I'm interested in drips but it seems very complicated to start. Keep up the great work


Keyvan Hadad 

Great videos Ian. Do you have any opinion on Canadian dividend growth companies? Canadian Banks? Utilities?


Anatolii Stepaniuk 

Ian, which one of those 3 industries you would personally prefer over others and what would be your reasons? You usually advice to divide equally among them, but do you think it is the best allocation?


JC 

What about REITs BDCs and the ever popular MLPs? Should I get into those or avoid them like Dave Ramsey avoids debt? What about stocks that are growing steady over time WITHOUT a dividend (Berkshire Hathaway, Credit Acceptance, Chipotle, AIG, etc)


Stev I 

Enjoyed the video!


Outdoorsie1 

This is one of your slightly older videos i know but i noticed you mentioned “di-worse-ification”. You been reading Peter Lynch??


Jonathan Lewis 

Dumb question: An electric company would probably be under the category of cyclical?

New subscriber and new invester


John Tiller 

Great video,thanks. This is good advice and over time it works however when you start it is depressing to realise that for every $1000 invested at a high dividend of 6% you will only be getting just over $1 per week! To get an income that you can live on you will need very big bucks indeed.


Richard The Magician 

Hey Ian! I fall into this category. I'm just starting out with this. I was wondering what you thought about investment apps like Robinhood and M1 Finance? I started using both the test them. And it seems like M1 Finance is the smart way to go if you want to buy fractional shares and have dividends automatically reinvested. It has no fees on Trading. There are some fees that the stocks themselves charge. But other than that, it looks like a really good way to go. I was wondering if you would suggest using something like this if you're just starting out rather than going through a traditional broker or using some other program that charges you a fee just for buying the stock.


Elena Starta 

Thank you for your videos, dear Ian. I am learning a great deal with your help. I just was thinking that in 30 years $1,000 due to inflation will probably will be equivalent to $100 of today’s money. Maybe even less. So getting $230 on $1,000 after 30 years won’t compensate for the lost value of money. Please feel free to correct me if I’m wrong. I know I have so much to learn. Thank you again for your great work with getting the knowledge out for the investors, current and future ones too.


Rxlyz Cxlyz 

This is so great thank you 🙏


Eric R 

Everytime I want to go back to my options trading ways i've been doing for the last 2 years I come back to watch this video. I believe this may be my 6th time watching it haha


Rob Mc 

Hey, great video. Very informative . But that smile is killin me. LoL


Doug 

You rock Ian


Warren Wynn 

How many portfolios do you have? Do you have only the dividend portfolio or others as well? Thanks


Canine 7 

Can you please share your views of Texas Instruments. I know you don’t usually like tech companies as much-but this seems to be a very rare combo of higher dividend (2.25 percent) considering that they are growing at such a rapid rate and there balance sheet looks great -and they have been around for almost 100 years and are still really focusing on r and d. Please give your opinion..another cool spin could be comparing it to Apple. I think Apple has about 23 percent payout ratio with increasing dividend. Txn I think has just over 50 percent payout ratio with the higher current dividend. I think both of these companies offer a unique combo of not just dividend growth but overall growth. What’s your opinion..please give them another look. I think you will be impressed at the long term dividend growth AND overall capital appreciation


striderOO7 

The current rate, I'm investing $100/per week, or $400 per month. Is this okay for long term growth?


Lydia Santiago - My Investment Journey 

you are amazing!! I love your videos.


jaisethe1 

Where/which broker do you find automatic investing options? Everything I have found states that automatic investing is for mutual funds only...


Salvatore 

Hi Ian, great video. Although I'm only 22, I've been doing a lot of research into dividend growth investing and I'm happy to say that I saved up around $6,000 and I'm ready to invest it. Your videos have definitely helped and inspired me to continue to learn about this whole process. I'm confident that this will be the start of a slow but worthwhile financial plan that will serve me well in the future. Thanks again.


Cliff DaRiff 

KO, JNJ, O


James Kuhlmeyer 

Just found your channel and I'm grateful for your knowledge. I won't be able to be as hands on with stocks as I have been due to schedule that I am starting to change most of my portfolio to dividend stocks. I picked up GAIN, GCAP, APLE, and CPTA. Probably around next month I'll look into buying the industries you recommended. Again thank you for the knowledge.


AufollAustin 

Can you discuss income tax ramifications starting out and through to retirement? Maybe comparing a ROTH IRA vs a DRIP portfolio.


Khan Pop Giveaway 

Food: mcdonald and Coca Cola

Pharm: Pfizer, merck and Johnson& johnson

Banking: visa, American Express and J.P. Morgan Chase. What do you guys think?


Tony Oliver 

Are dividends thorough DRIPs still taxed?🤔


reddiamond494 

Enjoy your videos...subscribed.


Destiny Rose 

Appreciate your channel. Thank you for adding value. I practice a lot of what you say in my own portfolio, but I’m wanting to fine tune and expand it.


Sebastien L. 

Would it be a good idea to trade on your own using for example Fidelity or Etrade platform to do what you recommend?


slawry2010 

How do you organize this? Do you have to go to all the company websites separately if you want to check on them?


Alley Cat 

30 years is a very long time for an investor to wait until he/she receive a 23% yield and gets a dividend payment of $1,150 each year.  Is there a faster way with a higher dividend payment?


Carlos Hernandez 

25 yrs old. Just bought 100 shares of KO ( drip investment)


Clayton Young 

What do you think of ORC? What do you think of monthly payers in general?


Brandon Daniels 

sounds like.

HRL-Hormel

PG- Proctor and Gamble

JNJ- Johnson and Johnson


Keenan 

I'm surprised you didnt mention motif investing to buy a basket of stocks for only one commission. Any thoughts?


Snowfirel 

How is it that company like T still pays out it's dividend, and it's pay out ratio is 91% right now? How do they manage to do it? Since the CEO's seem to hold zillions of shares of T, aren't they all worried?


Dividends For Hope 

Great job Ian keep up the great work!


Aaron Johnson 

Great video Ian.


mobbin0 

Thank you for doing this video very informative! Great video as always double thumbs up


Mel Catalasan 

Great Video. Keep up the good work. I can't wait for more dividend growth investing videos from you. Thanks again Ian.