The Truth About Dividend Investing: What Investors Get Wrong at Every Age

Comments · 1.3K

• JO

  @jonarment1229 · 9 months ago

  Dividend investing feels like planting an apple tree, watching it grow for many years, and then enjoying the fruits later in life.

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• G-

  @G-Wing2268 · 9 months ago

  Another important factor with dividends, if stocks/funds/ETFs/market are down, is that you are still getting paid dividends and don't have to sell at a loss capital gains and keep your respective shares.

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• MI

  @Mike-r1j5e · 9 months ago

  As a retiree I invest long term in dividend paying stocks so that the dividends comfortably pay for my normal living expenses.  The rest of my funds are invested in growth stocks and some in MMF (cash) to take advantage of a sell off in attractive individual stocks or the entire stock market.

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• DE

  @DEEZEEMTB · 9 months ago

  My approach is to have two portfolios (1) Growth (2) Dividends. Offense and defense.

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• FR

  @FreakyLynx · 8 months ago

  At 48 I have a healthy amount in my 401k and I’m five years into contributing to a Roth IRA. A few years ago I started considering early retirement and after watching numerous videos I decided to start building a high yield dividend portfolio with the goal of using it as a bridge account and later to supplement withdrawals.<br><br>Currently have a brokerage account that’s providing about $900 a month in dividends which are being reinvested. I don’t know how high I’ll be able to take this before I start spending rather than reinvesting… but it has provided a lot of ease of mind when thinking about employment. I may consider finding a less stressful job and coast my way to retirement if it’s looking good enough by my fifties.

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• OU

  @Out_of_Ojai · 9 months ago

  All your videos are exceptional, but this one is the best -- for me. I actually learned something and have to process it intellectually to perhaps modify my investment strategy.<br><br>I&apos;m newly retired, and have about 10% of my portfolio in SCHD, almost all of it in a brokerage account. For me, SCHD works as an alternative to bonds and as a hedge for market downturns. My thought is that if the market drops significantly, SCHD will drop a great deal less while still paying out dividends. I have 2 years&apos; worth of expenses in cash (pretty stupid, actually, as I&apos;m missing out on interest), so I&apos;m not taking any money out of my retirement accounts yet.<br><br>I&apos;ll have to rethink my strategy.

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• CS

  @CSM-68 · 9 months ago

  Our strategy has been rebalancing from growth ETF’s to more stable Dividend ETF’s. Currently we generate $3,000 to $4,000 monthly in dividends across all accounts. This has allowed us to look at retiring my wife as that is what she brings into the household. You are right it is not a Dividend Only or Growth Only approach but a blend.

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• AR

  @archoplites · 9 months ago

  A lot of good points about dividend investing and, as always, it depends on your income goals.But with proper dividend/tax management one can sleep well at night and live off dividends, with some sound stocks/ETFs generating above 3-5%. And if you want to avoid taxes and RMDs, an option is a ROTH acct. with dividends. But great advice Erin.

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• BO

  @bobv5806 · 3 months ago

  I always learn something from these videos. I was not aware of in-kind transfers to satisfy RMDs. Thanks!

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• BR

  @brn41306 · 9 months ago (edited)

  It’s a mind game. As a saver I won’t be able to sell my holdings so I better have enough dividend holdings in my portfolio!

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• IN

  @InlineSkater72 · 9 months ago (edited)

  As a 54 year old my online non-retirement stock account that I have had since the 1990s tells me that the next 12 months I will receive slightly more money in dividends than I receive in my take home pay from work as a software engineer with 28+ years of experience. Edit: One thing I should have mentioned is for the first 10 to 15 years of this I didn&apos;t worry about dividends. I was more interested in growth and in this I selected several stocks that I was very familiar with in either the home improvement or IT fields. About 10 years ago after I had what I saw as enough growth (purchased hundreds of shares of HD and QQQ in 2009) I switched to dividends and more diversity in my portfolio. I still have the growth stocks.

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• TH

  @TheOriginalTucriah · 9 months ago

  If you&apos;re building a dividend oriented portfolio over a long period, you&apos;ve already factored in your taxes the whole time. The younger you are, the more growth you should focus on and rebalance towards dividends closer to retirement you get.

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