How Income Investing Beats Dividend Growth
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- Опубліковано 1 жов 2024
- / dividendbull
For millions of Americans, one of the most popular ways to try to become wealthy is by playing their state lottery. According to Vox, over half of the U.S. population will buy at least one lottery ticket this year in an attempt to strike it rich. For those who might not be familiar, everyone who actually does go on to win the lottery has two different options in terms of how they'd like to receive their winnings. They can either receive the money in a single lump sum payment or you can elect to go for an annuity, which will pay out your winnings over the course of many decades. Not surprisingly, the vast majority of lotto winners choose to receive a lump sum payment.
Although some news outlets will try to say it’s smarter to go with an annuity, the fact is they’re wrong. If you’re actually good with money, then you’d be better off receiving all of your money upfront, even if that comes with a slight penalty that wouldn’t with choosing an annuity. Getting paid all of this cash comes with a lot of excellent benefits, from being able to cover a larger unexpected expense in any given year, to being able to use the extra money to invest and grow even bigger. In the same way, it's my belief that many investors would be better off investing in higher yielding stocks today and receiving large amounts of cash flow from their holdings today, as opposed to holding lower-yielding growth stocks and waiting for them to grow their distributions over a long period of time. As I've said before, it's a lot more satisfying to receive large dividend payments right now and not settle for a lower amount today and hope that they'll continue to grow over time.
I would think that a major benefit of dividend investing is that calculating portfolio size needed is not relevant. We don't care about the value of the portfolio. We care about the sustainable income it pays. As you invest you can gradually see the income rise as you invest more and pull the retirement trigger when it's high enough regardless of the market sentiment.
Calculating the portfolio size needed is very relevant. - How else do you know how much to contribute?
By calculating how much additional income the contributions produce and estimating how that income rises. the capital value will fluctuate up and down over time so the amount of income new additions give you varies. so capital value being high with a market yielding 2% is no worse for retirement than the same portfolio at a different timepoints where the capital value is half and so the yield is 4%. so long as the yield is sustainable in real terms the capital value being half does not matter. its the same income stream at a different moment of low market sentiment vs high market sentiment.
I'm sure the idea of an investment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 880k within 16-months from an initially stagnant Portfolio.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Because of dividends, I first began investing in stocks. It's important, in my opinion, to be able to live off of dividends without selling if you invest and make other income in addition to payouts. It suggests that you may pass that down to your kids and give them a leg up in life. Over the years, I've invested over $600k in dividend stocks; I continue to buy more today and will keep doing so until the price drops even further.
Hearing from an experienced investor who has survived adversity and prevailed is always motivating. It may be frightening when your portfolio goes from green to red, but if you have invested in strong firms, you should maintain growing them and stick to your goal.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Melissa.
My dividend journey began when I realized that two particular expenses in my budget were always going to go up and never go down. The two expenses were taxes and insurance. I realized that the dramatic rise in both will need some added income. So, I started buying shares paying dividends. I can now see that this will be the path I need to take to make sure those two expenses will not overtake my future income.
As a beginner, educate yourself, Learn the basics of investing and the stock market. There are many resources available online, including books, articles, and online courses. It’s a good idea to diversify your portfolio across different stocks and sectors to minimize risk. I’ve heard of people accruing over $550k during recessions and inflation, its important to do your own research.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
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Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
scam
My dividend journey began when I realized that two particular expenses in my budget were always going to go up and never go down. The two expenses were taxes and insurance. I realized that the dramatic rise in both will need some added income. So, I started buying shares paying dividends. I can now see that this will be the path I need to take to make sure those two expenses will not overtake my future income.
As a beginner, educate yourself, Learn the basics of investing and the stock market. There are many resources available online, including books, articles, and online courses. It’s a good idea to diversify your portfolio across different stocks and sectors to minimize risk. I’ve heard of people accruing over $550k during recessions and inflation, its important to do your own research.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance advisors you could check out. We have been working with Michele Katherine Singh, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Well, I gotta admit, I took a hit in the profit department with my stock moves. But hey, every red chart has a chance to turn green, right? Time to step up my trading game and flip that chart for the better.
Investing in this economy is a hell at times for the average person that wants full control of their finances, Even investing in EFT stocks can be risky
The question to be asked at times is not if the government or the economy is responsible for the sudden dramatic shifts in the economy but if we are taking the necessary measures to avoid making losses no matter the situation even if the pay roll is not in your favor.
One of the reasons i follow up these stock videos is to improve the returns of my investments and i can’t really say I’ve been seeing noticeable change though …. I’ll keep following to improve my investment philosophy anyway and find better ways to create smarter investments.
What would you consider the necessary measures though? I was at a seminar two days ago where investors gave their opinions on how we can better investment for proper returns.
Investing broadly in low risk stocks just after investing in a high risk stock can yield good results. I can’t perfectly explain though I learned things like this from a firm that provided good financial advice.
I choose dividend growth and income combination - i only invest in dividend stocks that total return more than the s&p 500, this can be found in certain stocks, my yield is 5%+ and 12% Annual dividend growth. As long as you do the correct research you can combine both.
Feel like sharing your picks?
i only invest in stocks that go up 1000% every year, that's why i'm a trillionaire
@@giffy7962 I don't normally post, but this is my favorite comment on here.
As soon as my growth makes it to 3-4 years of my dividends I find a new company to invest into. I will admit I had lost out on some good returns due to that strategy. it has also got me out of some bad situations. But the investment has had continuous improvement regardless.
I’m personally comfortable with a 20-20-60 approach.
20% in +5% yield,
20% in growth companies, and
60% in high yield growth ( so in ten years my yield on cost basis will be +5%).
This is similar to my strategy with the a focus of international investments for each field. Just in case US domestic markets take a slump the international markets to add diversity. Steady growth with high income.
I do +5% in every holding but 1 ETF which is a 2% yielding 20/80 growth fund. I like income!
Good approach. I’m a mix of growth, dividend growth and income now to reinvest in growth. Working well. Likely underperforming. But I get excited to reinvest monthly and quarterly. Time frame next 20+ years. I have a DB pension also.
Hard-coding those percentages really doesn't make any sense, although maybe starting that way can. The important thing would be to create a Composite Valuation for everything in your portfolio - that is, a dollar amount that reflects, in some combination, how many pennies per dollar the product is worth because of its dividend, and how much it's worth because of its unrealized capital gain. With that, you can always know what's "worth more" to put last month's dividends in, for next month. Then, your portfolio is always the best version of itself it can be. And if you create a watchlist in the same way (with all products set to a purchase date and correct price from that date a few years old), you can put a bunch of products on the same "starting line" to see how they race against each other.
You mention 5% as a cut-off, which I thought was interesting, because that's my guideline for my cut-off between two of my watchlists - LTS (long term strategy) and HDI (high dividends & interest). Companies like Allison and ETFs like VDE go in the LTS list, and products like NXG and GOGL go in the HDI list.
This is REALLY bad advice for anyone who isn’t planning on immediately using the income to live off of
My goal is to amplify my paycheck while building a massive cashflow over time to fund my retirement eventually. Income investing is the perfect vehicle for that. The potential higher total return of growth investing doesn’t mean anything if you need money now. Can’t buy a car with a stock price, only hard cash counts.
🙌🏾🙌🏾
I get the point about the initial flexibility of being able to use the dividend payments for emergencies that come up but... That is why you should have an emergency fund to cover those expenses thay come up. You should not touch your investment account including the dividends, let it compound.
Dividend growth is a bet on an unknown future vs. The "here and now" from income investing. Fun fact: the future doesnt exist. Only the present exist.
But then why not sell a part of your stocks once in a while instead of keeping dividend stocks which a typically worse performers?
@@LeMAD22 The long term point is not share price performance but cash flow. Volume and simple compound interest will always win because there is no exit strategy needed. The nest egg keeps getting bigger and feed itself with the cash flow without ever having to sell good stocks. Thats generational wealth in the making.
@@LeMAD22because most all individual stocks will not grow in any meaningful way. Per studies, only 10% of stocks carry the market growth.
🙌🏾🙌🏾
There is no one answer for all investors. There are many factors including personal risk tolerance for any one person to evaluate before deciding what investment style fits their needs...and subject to change over time (we all made mistakes). Personally I like your style of investing, but that fits me due to - I'm a few years from retirement and my dividend accounts are secondary to a pension I will be receiving. But considering all this, I invest in a diversified sector of stocks that can be classified as dividend income (65%) and growth stocks (35%).
I agree that rewarding yourself when you hit investment goals is important. It doesn't have to be anything big, but a reward for sticking to the plan is a great motivator to keep going.
Honestly the best method of investing is the one you stick with over time. If you're a growth investor and the market tanks, then you may be tempted to sell and get out of the market. If you're a dividend income investor and the monthly income payments keep you invested as you're seeing more than paper returns, then this is good. Or if you're a dividend growth investor and you enjoy seeing your dividend payments keep increasing and that keeps you motivated to stay in the market.
For me 75% dividend growth and 25% dividend income makes the most sense to me.
Excellent video, at the very least going income investing until you build a sizable balance to rely on is an excellent way to go. In my case I went 100% into income and the snowball effect really gave me much more peace not depending on stock market gains to be successful. Also, a number of new income products continue to be introduced each week to pick from giving you numerous options.
Money is not valuable until it is used..
One issue I have with dividend growth is that (1) it takes many years (typically 10 to 20) for the dividend to catch up with the yield a non-growth dividend and (2) even after that many years, you need many more years to catch up with the TOTAL dividends accumulated over all those years by the non-growth stock...
To me, any dividend below 4 % is a joke. Or, to put it more mildly, it is more value or growth investing than income investing.
Fire up your Excel and do a simulation!
Ridiculous when these videos talk about "had you invested 100K"
Let's talk more of right now. Anyone that had that kind of money for one stock isn't watching this.
Balance, it is all about balance and goals
"flexability"
His splel checker is broken.
Well done, so many people forget that re-investing dividends is also a form of returns... Maybe the share price won't do much, but your number of shares sure will
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
It depends on the company. If you believe a company can make better investments than you can today then you want them to not pay a dividend at all or only a small dividend. The reason is that paying a dividend and using the dividend to buy more of their stock has tax implications and transaction costs. You wouldn't want a company like TSMC to pay out a huge dividend, they must take almost all their profits and plow them back into the next generation of chip technologies.
High dividends are for stable, boring, mature companies and those are a good counter weight to more risky growth stocks where your expectations what will happen in 5 years can easily add another zero to the end of the stock price (e.g. nVidia) and if that vision of the future fails to materialize that P/E will have to come back to Earth by way of a collapse in prices and if it *does* materialize that P/E will come back to Earth by earnings steadily growing at fantastic rates.
I'm trying to stay away from the AI hype because I think it's way too early and a classic bubble, but I could be wrong.
Maximizing yield is not correct thing to do for everybody, this is why bonds, saving, and insurance exist. The issue with growth stocks a great deal of the time is that it can feel like a liability putting your money into each month thinking "this sucker will just go up". I have something for now, something for a bit later, and something for the longterm.
Bonds and insurance exists so that they can market those products to CLOWNS like you.
it is not a slight penalty... it is like 45%... still take the lump sum
Something scary is investing for 30 years only for the market to pull back as soon as you retire
wouldn't affect dividend investors
Alright, you convinced me. Tomorrow I gonna buy a lottery ticket.
Chowder score is your friend: add dividend yield to CAGR (typically 5 years), a score of 12+ is good.
i feel like using margin is where income investing really takes off. takes careful planning and discipline though
I think it's all about finding a good mix that works for you:
- Have a few thousand bucks in cash / cashequivalents
- Have High Yield stocks (4-10% Yield) for cash flow now
- Have high quality dividen growth stocks (1-3% yield, 8%+ CAGR) for more income later in life
- Have some high quality compounders to multiply your money (like amazon, bitcoin, nasday etf, ...)
absolutely agree with this.... mix of high growth stocks, dividend growth stocks, and high yield (for cash flow or drip)
You don’t keep your emergency money in the market, you keep that I’m a high yield saving account.
I keep mine in SPAXX.
I keep my cash in my IUL.Then deploy it when a really good opportunity comes up.Happy investing/stacking.
After 24 years of investing, I agree with this approach. The reality is, "growth" over many years, may never happen for a good portion of your portfolio.
Amen Brother
hilarious video.
Time value of money...always a MASSIVE consideration in finance and in any capital investment...
The Powerball is over a Billion tonight so I will be investing 2.00 in 1 ticket
Your forgetting the fact dividend growth stocks actually go up as well. Not stay flat
How VTI beats all of these options long term
I use high yield stocks to buy dividend growth stocks
Arent you losing 30% capital gains tax every year on your gains though seems like the tax implications will eat your proffit alive
@@jimmyt5241 exactly
@@jimmyt5241 Not if it is in your Roth IRA.
all good thats what retirement accounts are for, churn baby churn
@@jimmyt5241 Not if you do it within your IRA
Well said. I'm continuing to build out a position with SPYI bi-monthly.
Sorry, the math does not fit with your what you are claiming. Shame, normally you are better.
If there are two stocks - Stock A that pays a 10% dividend but has no dividend growth or appreciation and Stock B that pays no dividend but grows 10% every year with no volatility - they’re literally the exact same in my eyes. All I care about is total returns.
Do you actually think Stock A is better?
With stocks A, you don't have to sell to be able to spend the return. By selling, you're lowering your future return.
Or, simply put, with stock A you have extra income, that won't decrease future returns from spending it. However, with stock B, you sell now to spend some of the return, and you will return less in the future.
@@sebastianlucas704 wrong. With stock B, you have $100 to start. It grows to $110 at the end of the first year. If you sell $10 of it, you have $100 again and it’ll grow to $110 again at the end of the second year - the exact same as if you received $10 in dividends.
@@iamjacquesbarjon No, because your total number of shares decreases, when you sell the growth stock.
@@sebastianlucas704 Yes your number of shares goes down the remaining shares are still growing by 10%. If they’re worth $100 at the end of year 1, they’ll be worth $110 at the end of year 2. It’s the exact same.
Lol spot on. The mindset justifying this video has more holes in it than swiss cheese
10Y growth with dividends reinvested on $10K:
ARCC ~$30,128.41 | 201.19%
SHW ~$57,186.56 | 471.96%
I think the correct title would be “How to invest when you need income right now.”
The title could be an option to not working for the next 30 or 40+ years.
@@scsu300 If one invested in a superior total return, regardless of dividend yield, wouldn’t that equal shorter time to work being optional?
@@DapperDividends Depends on how much your monthly expenses are and how much you have to invest.
@@scsu300 Would having less to invest mean buying a lower total return business is better?
I’m not following, but it feels like a shortcut to making work optional.
@@DapperDividends All I'm saying is a way to invest could be to looking at your timeline first. How long do I want to work for? What are my monthly expenses? Where do I want to live and how much per month do I need to live there? Then, look at the yields of many different companies and construct a portfolio based on your work timeline. If I have this much to invest each month and it pays me x% yield then I have to put in x amount to equal what I need to live off of. Run that math with lots of different companies and pick what keeps you sleeping at night...of course, do a lot of research.
Where and how can we invest in dividends?
Open a robbinhood account and buy stocks that pay out monthly - do research
You buy stocks that pay dividends.
FlexAbility?
Excellent video
The bottom line is really simple: investing in assets with the only financial goal being capital appreciation, especially when the value of those assets is historically highly volatile, makes absolutely no sense to me at all. For that strategy, far better to buy some asset that you can enjoy while you own it, like an antique car that is certain to increase in value over time and you can also enjoy it while you own it. But if the asset is purchased strictly for making money, then it needs to be earning income the entire time you own it. Then no concern remains for whether the asset increases in value over time, especially considering that as long as it earns money, it is always better held than sold, although given enough time the asset is bound to increase in value.
My dividends grow every single month. The market goes up, and it goes down, but my dividends grow month after month and year after.
Ecopetrol 22% dividends and blackstone mtg TR INC 12% dividends are great high dividend companies. Any banks and motor vehicle companies is good for growth but lower dividends.
If you think your broker takes a lot, just win the lottery and see how much is Uncle Sam's cut. You would need to kick up less to the boss of your family if you were in the mafia.
I'm having a 🥩 now
Another point is that income investing disciplines you to only spend what you earn in dividends when in retirement. When you are invested in the S&P500 during retirement, you are constantly debating whether or not you should sell some of it and how much because the dividends from the S&P500 are not enough and bonds are barely throwing off dividends too. If you follow most Financial Planning advice during retirement, then you are funding distributions mostly by selling your investments. The only part where this really doesn't matter is RMDs for a deferred retirement account because at a certain age you are required to distribute more than you earn in dividends/income even if you focus on high dividend/income investments. Which is why I advocate for getting rid of RMDs. RMDs are a way for the government to force you to pay taxes before you die.
This is one of my favorite UA-cam channels and this video is an example why. Dividend Bull always gets into the nitty gritty of investing, even when it goes against popular consensus. I, too, find higher yields to consistently beat my dividend growth equities, especially when both are on DRIP. There's currently a lot of great opportunities to have both right now, such as with many utility stocks and REITs that are offering 4-6% yields with 5-year dividend growth CAGRs of over 5% as well.
Lottery payments used to be 20 yr payments years ago, but I heard it’s like 25-30 yrs now.
To me it depends if you need money now or later.. so basically if you target to live off dividends right now or later on in life 😊
I feel like you were paid for each time you used the word "investing" or made a bet with someone.
MO- Ladies and Gentlemen, MO Exorcise the equity and contemplate the dividend.
I use high dividend stocks to invest in dividend Kings
Flexibility is spelled like this.Good video.
Finally, someone made a video like this
Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️
I'm 37 and have been looking for ways to be successful, please how??
You should stop. Because if you were a believer in Jesus Christ you would know to not come on here and be stating what you are, instead you’d be humble. If you were a believer you’d also know that if given this blessing you’d be blessing others instead of keeping it for yourself and again coming on here and bragging about how much is given to you. True kingdom builders know this. Stop pedaling the Gospel for selfish gains.
I like to invest in lottery tickets!
Total return is all that matters
Risk?
@@xJoeKing risk is higher in low performing income stocks/ETFs with NAV erosion and/or shrinking price action and dividend payments
Not for never sell dividend invstors
@@ammart5240 doesn't matter, you're just hyper focused on selling vs. dividend. Selling shares and receiving a distribution makes no substantial difference.
Have fun in Dubai:)
"Flexibility"
I agree
Amen
Have a great trip
Good video man
Aww yeah!
Nice
You make a very good point… but wait so do growth investors…this is the reason my portfolio is invested 50/50 … this method has been tested and the results are very impressive…have a great one
I’m not sure I agree. Dividend growth is really powerful over 5-10 years. But if you intend to pay your bills, with dividends you do need to ensure the yield from the portfolio is enough to fund them. Dividend safety and cash flow growth really are the metrics that matter.
if you can pay your bills with dividends that means you already have enough invested not to worry about capital appreciation.
I am not a dividend investor, but what's said in the video is true. I did those kind of calculations a few times in my life and came always to the same result.
But this isn't only an arithmetical issue.
People often ignore hindsight bias when they look at stocks. And they ignore mental challenges the majority don't overcome. Nobody on earth but Jeff Bezos hold Amazon from the beginning. For most people money is much too important that they could easily wait and watching a stock to become a tenbagger.
As mentioned in the video the future issue is another huge problem. For all those super smart below the age of 30 investors, look what happened to the so called Nifty Fifty stocks.
You did NOT try to justify your argument by comparing a high-yielding bdc to a paint company yielding
Is this AI talking? Or do people talk like this these days?
Lmao now that you mention it the b roll no face shown he very well could be ai.
This is how he's talked for years.
He’s been talking like this for years. You do know some people are monotone right?
This is AI voice
Income investing is great in theory but so far, owning growth-focused funds and selling shares as needed for income has proven to be the best approach in terms of total return, tax efficiency and fee minimization.
You can cherry pick certain income stocks and get lucky. But then again, you could cherry pick certain growth stocks and be even luckier.
Selling shares is eating your cake. Eventually you run out. Dividends are the cake that never leaves the table.
@@MuzixMaker this is false. Not only are you eating your cake with dividends, you have less cake to eat overall as well vs companies screened on quality and growth vs dividends.
Dividends aren’t magic. They will disappear or decline if earnings don’t grow over time. The same mechanism that makes growth companies, and their share prices, continue to increase in value over time. High quality companies with moats and earnings growth is what you want.
For non-retirement accounts, growth investing is better and it is not even close. Why? Because dividends are taxable. And in the case of REIT dividends, you can't even benefit from qualified dividends to add insult to injury. Growth appreciation grows tax free until you sell!
With growth, you can pay long term capital gains, which caps out at 20%. This is the same as with qualified dividends. Many income based ETF are 60/40. While not as tax efficient, they do offer a higher yield.
It depends on the situation you live in a state with no income tax and suddenly it really doesn’t matter. Also it depends on your timeline. I don’t mind paying some taxes if it means I’m financially independent in 5-10 years why if my alternative is to hope the growth stock appreciates over time and i make 20-40 years down the line then maybe it’s fine.
@@mikeyman1974 I live in Florida, a no income tax state. But you still have to pay FEDERAL taxes on dividends.
@@ContrarianExpatriate i’m aware you still pay federal income tax but in the grand scheme of things that’s really not so bad. This really goes back to what your goals are if you wanna retire in 5-10 years pay the taxes if you wanna retire of your portfolio in 20-40 years than fine do growth
You are wrong.. High yield loses every time over the long run
like Nvidia and apple?
@@dogelife7901
Nvidia and apple are not high yield stocks.. those are growth stocks..
High yield stocks/etfs are scams like QYLD RYLD etc
The dividend growth people will hate this video, specially the SCHD worshippers lmao
I agree with your philosophy, but using dividends from a cash stock and selling capital from a growth stock is the same exact thing. Dividends drop the price of a stock when issued. You could sell the equivalent amount of capital gains in a growth stock.
Not the same thing exactly, that’s only assuming you are selling for a gain, and taxes play a huge role depending which account. I would much rather live off dividends than selling off principle
Unfortunately the market is fucked up now.
Mega-caps like MSFT with shitty 0.something % earn through growth more for investors than our measly 9%.
As someone who went for income investing this sucks.
In terms of total return, this title is simply wrong.
Especially if you have to pay (more) taxes on dividends, since I would want to use the income earlier.
Try to buy a car with your total return and you’ll see the difference.
He listed a very specific scenario and it is how income investing is better than growth. Nothing wrong with it.
Did you only read the title and not bother to watch the video? The entire premise is him describing the scenarios where it’s better
Senseless post. Leave troll.😂