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HomeUncategorizedThe Problem With Dividend Stocks 🤯

The Problem With Dividend Stocks 🤯

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None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

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76 COMMENTS

  1. Dividend Stocks are the bomb. I’ve made a ridiculous amount – and getting that monthly paycheck in a way that is NOT a tax event, since you don’t pay taxes until you reach a high wage – is awesome. From a fellow creator and investor… 😉

  2. The amount of people that don’t know dividend stocks can be tax advantaged without a Roth IRA is sad…
    Qualified dividends peeps. You pay 0% if you earn less than $40k in divs in ‘21 as a single filer in the US. And if you’re earning more than that in Divs you’re likely financially free. Divs>growth for my portfolio

    • The 40k is gross income, not just dividend income. If your salary is $40k or higher, you’re paying taxes on any dividend you receive.

    • @@2k3SteedaGT This is true. For me, I get 1700 USD a Month in Military Retirement… meaning I don’t pay Taxes until my Dividends hit 40K a Year. Pretty nice for people on Fixed Income like myself.

  3. It is a solid debate that’s been around for years, but your oversimplification of dividend stocks does an injustice. Dividend stocks can also be used as a passive investing strategy that doesn’t come with the massive volatility of the growth markets, I’ve got some of both and I personally think it’s a personal decision people should be making because everyone has their own risk/reward threshold

    • Anyone who has read at least half a dozen books on capital allocation and finance could poke a hundred holes in this ideology.
      It makes perfect quantifiable sense from an academic perspective, however in practical application is largely nonsense. It’s a theory perpetuated by a response from buffet at a Berkshire conference that was taken WAY out of context.

    • Please make a 1 minute short that is able to do better. These aren’t intended for you to just do exactly what he tells you to. They get you thinking. Should you invest in growth or dividend stocks? Which ones? The goal from his point is to get you to do research, not spoon feed success to you.

    • @@theskilledsnake I’m more curious as to your thoughts on this after your research. What have you decided is best for you and why?

  4. I use my dividend payments to buy other stocks that offer dividends so I’m diversified and don’t lose my position just in case it grows a good amount

    • @ i started with the vanguard total stock and grew from there i have multiple etf stocks but only the ones that pay dividends after a while with those i added multiple dividend kings and aristocratics havnt sold anything yet just keep adding

    • @Leanne Wesk Let’s take this premise. Let’s say you have 100 USD a Month you can Invest in. With Growth Stocks, that means you’re locked in at only 100 USD a Month, 1200 USD a Year.

      With Dividend Stocks, you Reinvest the Dividends. So Month 1, you get 1 USD. Not much. But now you have 101 USD Buying Power. Every Month your Buying Power INCREASES with Dividend Stocks. So I still only have 100 USD available from my work or my disability payment… but now I have MORE than that to Invest, since the Dividends add to it.

      Right now, I’m hitting 170 USD a Month in Dividends. So I went from putting in 500 USD a Month, to 670 USD a Month. If you go from 100 to 120 a Month, that’s a nice 20% Increase in Purchasing Power without a raise at work, or without cutting back to be able to invest more out of pocket.

  5. Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content! 👍🏽

  6. I mean no, if you reinvest the dividends you can get more dividends so really this is stupid. It’s not like there won’t be taxes in the future

  7. This video implies dividend growth has no place, but only “income” funds or growth. Having a yield on cost higher than the average return of the S&P cannot be ignored.

  8. Dividend are taxed at the lowest tax bracket . Like 15% . I used the passive income from my dividend stocks to buy growth stocks. It’s good to have both .

    • People also tend to forget that many stocks are actually Dividend Growth Stocks. For example – Johnson and Johnson (JNJ). Their stock value AND dividends rise over time, so you get the best of both worlds. Plus, a consistent record of dividends over multiple decades is a good way to determine the true quality of a company. JNJ has paid out over 50 years of consistent, rising dividends, quarter after quarter, through world wars, recessions, company hardships, political changes, etc etc.

    • This short is just click bait schlock If you are going to manage your own money for the love of God read some financial white papers.

    • But you could just sell the % of the growth stocks you own in the amount of the dividend % you receive it’s the same thing. Taxed at lowest tax bracket too

    • Yes I have both,dividend etf’s and dividend stocks but also many positions without dividend.
      In the app I’m using there is a daily lists of ‘movers’ so I also buy stocks that went up rapidly.
      For example I bought 3 stocks of Kala Farmaceutic for Total 24,90 eur.
      Next day they went up around 350%. Total value was now 110 euro.
      I sold 2 for 74 euro and kept one.
      I made 85 eur profit in one day (if only I would have bought 10 stocks or more…if if if lol)
      These are small lucky moves but it’s fun to see a quick return.

    • @@katoria69 I’m 19 and new to investing In stocks. So basically it’s better to invest in growth stocks instead of dividends?

    • @@ericthomas9192 do you like coke or Pepsi? Depends on the individuals taste buds. Dividend aristocrats are better during market downturns (like 2022 right now). Growth are better upside in bull markets. I use dividends like others use bonds. Whatever your age, you can put that in dividend stocks then the rest for growth. But at 18, growth is good. I did that up until this year. I’ve lost over half a million on paper as a result. But I was up to 2 million because of how crazy growth stocks were. So it’s really a matter of age and preference. Higher risk high reward, or slow and steady nearly guaranteed millions by retirement. Or just split the difference and buy apple and Microsoft as growth dividends 🤷‍♂️🤷‍♂️

    • @@markislivingdeliberately so dividend stocks are better than growth stocks ? If so what stocks should I invest in that pays me monthly dividends?

  9. In a bull market, yes..growth stocks are better, but when you combine bull and bear markets, dividend stocks actually slightly outpace them. Dividend companies generally indicate good long term success. Especially if they are able to continue growing their dividend year after year. In a market correction as we are in today, dividends are a great way to continue advancing your portfolio growth as you are able to reinvest that steady income.

    • …but reinvest in what? Back into the company that is now less valuable since it just kicked out a bunch of cash assets that you owe taxes on? …Or invest it somewhere else?

    • Yes he did, but he said you’d be taxed on those dividends. Unless you’re doing it in a Roth which he should’ve mentioned

    • Okay but you dont pay tax on dividends until your short term capital gains income reaches 40k in a year. @@advikdeshmukh805

    • Most “guru’s” are just reciting information. You could make a salaries worth in dividends, before owing taxes so yes you can still compound them
      @@advikdeshmukh805

  10. Dividend stocks are not for retirees. That’s a myth. Dividend stocks are for young investors that want to be retirees at 40

  11. I have been a dividend focused investor for a long time. This does not mean I don’t own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.

    • Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important.

    • In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

    • The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name. She’s established.

    • I just googled her and I’m really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

    • The first step to building wealth is figuring out your goaIs and risk toIerance – either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.

    • I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon. Give this a try and attain good-returns.

  12. Additionally dividend stocks do payout regularly allowing for you to buy more of the stock. So while it is true a 8% dividend yield may lose to say 10% growth stock you get paid out 2% in Q1 buying more stock so that in Q2 you would get a 2.x% payout (to lazy to do the actual math) so depending on the tax bracket you can in some cases come out ahead even in the long run with dividend stocks especially if you can reinvest as pre-tax assuming you aren’t already maximg that out.

  13. I’ve heard that index funds and ETFs provide diversified stock market exposure while spreading risk. I have over $100K in savings; What’s the most effective strategy to allocate funds in my portfolio and generate profits?

    • Yes, there are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist

    • Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn’t working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.

    • This is definitely considerable! think you could suggest any professional/advisors I can connect with? I’m in dire need of proper portfolio allocation

    • *Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

    • Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

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