Why Dividend Income Investing is 𝐍𝐎𝐓 a Good Idea for Passive Income

𝐂𝐡𝐚𝐫𝐭𝐞𝐫𝐞𝐝 𝐖𝐞𝐚𝐥𝐭𝐡 𝐌𝐚𝐧𝐚𝐠𝐞𝐫 shows you Why Dividend Growth Investing is 𝐍𝐎𝐓 a good idea for passive income.
Everyone on KZbin is talking about how to make passive income, and the darling ‘passive income idea’ is Dividend Income Investing... a magical strategy that pays you income into your account each month. Unfortunately, all is not as it seems and there are many reasons why very few professional investors use this strategy and the ones that are struggling or have gone out of business...
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐈𝐧𝐜𝐨𝐦𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠
When a company makes a profit it can do one of three things with the cash:
Invest in projects that have a strong chance of maintaining or increasing their return on equity
Fund acquisitions of other businesses
Return profits to shareholders
Returning profits to shareholders is favoured by companies that do not feel that they can invest the money in their own business and still maintain their return on equity. Apple, Coke, British American Tobacco are all companies with excess profits that they cannot find a good use for.
They then have two options for returning these profits to shareholders:
Share Buybacks
Dividends
Investopedia - Share Buy Backs Vs Dividends
Dividend Investing is a strategy that invests in companies that have a history of paying a high and hopefully growing dividend. Investors are there core reasons for using this strategy:
To generate income (which it does)
To achieve market-beating returns (which it has done)
Because they love it! (the methodical process is addictive)
In this video, I explore the major flaws in each of these, which renders this strategy unsuitable for 99% of retail investors.
Articles and further research:
DALBAR 2020 Quantitative Analysis of Investor Behavior
www.dalbarcanada.com/dalbar-2...
S&P Research - A Fundamental Look at S&P 500 Dividend Aristocrats
www.fa-mag.com/userfiles/ads_...
Financial Times (paywall) - Value and growth investments gap at 25-year high
www.ft.com/content/aa752110-4...
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - James is not responsible for investment actions taken by viewers. Please seek out a regulated advisor if you require assistance (whilst James is a financial adviser, he does not provide advice through this KZbin Channel, which is not affiliated with his employer).
James Shack™ property of James Shackell
Copyright © James Shackell 2021. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.

[@DannyRicher91]

One of the rare youtubers that doesn't need to give the 'I am not a financial advisor' disclaimer. Good video!

[@JamesShack]

Cheers!

[@user-tn2fe1ul1n]

Agreed

[@mariolaredodiaz7698]

It's great to see you mentioning Ben's videos. He often utilizes data-driven arguments and I personally find such approach the best to support any idea and avoid biases. I recently discovered your channel and am enjoying it quite a lot. Fair play and congrats on the good job, James.

[@CRAIGO10]

A breath of fresh air hearing you say this. My 0.06p dividend from Apple wasn't quite cutting it for me ;)

[@Matt-gf4gd]

Hold it for another 20 years and see how much you've made on top of your capital gains. I'll bet it adds up.

[@thesesweetpages8049]

I really appreciate that there’s somebody qualified giving advice on here - thank you!

[@johnristheanswer]

No mention of UK shares ( from a British presenter ? ) which generally pay much higher dividends where you can easily achieve 5/6% relatively safely.

[@JamesShack]

Because you should not have a overweight to the UK simply because you’re British. If anything, being British is a reason to avoid UK companies because your life is already heavily exposed to the British economy, politics and tax system.

[@johnristheanswer]

@@JamesShack Thanks for reply. My point was you said " you'd be lucky to get ~3% " , whereas in fact 5%+ is widely available , even to your international punters as to them we would be a ' foreign investment '.

[@chuckmurray1825]

Thanks for this video. Very educational for many of us.

[@malcolmbirkett1347]

I'm a dividend investor and I'm happy with my returns. Some dividends did get cut lasy year. But this year things are slowly getting better with reinstated dividends but at a lower yield. I also hold investment trusts. But now I would like to add a global etf so I can compare the difference.

[@JamesShack]

Fair enough!

[@Matt-gf4gd]

I like it all: dividend growth, REITs, CEFs, growth, SPACs. Hopefully I'm just picking better than worse stocks from each category over time (and at a fair/good price) and all end up yielding returns for me in the long run 😅

[@JamesShack]

🙌

[@XcpRevolution]

Great video, never understood the hype around Dividends. Well put thank you so much.

[@JamesShack]

No problem! Yes Dividends are a distraction really! They are simply a symptom of the true characteristics that you are looking for!

[@SeymourClearly2]

I’ve just discovered your channel and it’s a refreshing change from the usual advice given on t KZbin. I’ve always thought that dividend investing isn’t necessarily a good strategy and that the capital needed to generate a decent income is huge so realised that I needed to take a different route. Thank you for the confirmation! Now I’m off down your rabbit hole of videos 😀

[@JamesShack]

I’m glad your enjoying them!

[@austinnay5594]

Hey hey, cheers to you mate! I'm an American and I could not appreciate the honesty more. I'll smash the like and more everytime for sontent like this. More power to you bruv!

[@JamesShack]

Thanks Austin, I'm glad to hear you don't mind the British accent. Maybe i could build an audience over there?

[@simon75uk]

really great vid mate !. yeah have seen a few DIY youtubers pushing this approach and this helps question that !

[@24pence]

Great video, don’t 👍🏾 many videos but you’re seriously underrated!

[@Life_Literacy]

This video so deserves more views! Solid real content. Loving your channel.

[@bad_writer]

Great video, I couldn't agree more. Dividend investing is an idea that appeals to novice investors because "passive income" and "you never have to sell any shares!". It's a result of very superficial understanding of stock investing. Most of those top youtubers are amateurs themselves, who don't understand that chasing dividends is hurting them, and they push millions of other beginners to do the same. It's sad.

[@JamesShack]

Indeed, most do it for the wrong reasons. A very small minority however do it because they genuinely love the process, and consequentially are likely to save more money and be able to retire earlier. But from an investment standpoint there is no rationale.

[@dominicrussell8158]

Would love to see a video about you researching crypto Defi, protocols like Aubit Freeway, Anchor protocol and other Defi yielding products. Happy to get in touch if you need some further ideas about that. Also great to see more UK finance YTers making good content.

[@daveschmarder-1950]

A good one, James. To me, the dividend is only a tax event. Looking at some history, I can see how dividends became so "important". Imagine yourself in the dark ages where you actually telephoned a broker and trades were very costly. If one were living on their investments, each time they needed some cash, it was an expensive event, selling a few shares. The dividend was a cost-free way to pay out a little money each quarter. I watch all those youtubers, but not for investment advice but more for entertainment. But Ben Felix doesn't tell me to smash the like button for the KZbin algo.... :)

[@timelston4260]

After watching all of Ben Felix's videos last year, I realized watching Andrei Jikh, Stephen Graham, and Ben Carlson was worthwhile only for the entertainment. Those three are still trying to decide what kind of investor they want to be when they grow up. Not Ben. He knows, and he's my go-to when I need to remind myself of real investing wisdom.

[@JamesShack]

Yes absolutely, to be honest i learn stuff from him too. I'm trying to fit the gap between those two groups. In my humble opinion, I think Ben can be a bit too "academic" in his presentation, and his videos require a solid base level of understanding (which is not necessarily a bad thing as it makes people go and use google like it should be!) but i think there's a gap there: good solid technical content but in a visually stimulating way that can be engaging for wider audiences.

[@pnkrckmom]

Amen, Tim. When I indulge too much on the "pie in the sky" videos and contemplate tempting fate by chasing crypto or some other meme stock, I always come back to Ben Felix (and now James) to get re-grounded in rational investment thinking.

[@celestebrant]

Thanks for this video! You're the first KZbinr who I have consistently given a thumbs up for (the reminders help too) because your videos are very informative which is exactly what I want when it comes to talking about personal finance. So thank you! 😁

[@JamesShack]

Thanks you so much! I'll try to keep up the quality 😅!

[@CovertDonut]

Same for me Celeste, James has helped me completely re-think my investing strategy. I've now consolidated a T212 Dividend Pie into an existing Vanguard fund. Thanks James, I feel that my investing journey will be far better because of your advice 👍

[@Pieter2360]

Yes! Thank god, someone who correctly explains the dividend topic. I find it mind boggling why so many youtubers and their followers believe in investing only in dividend paying companies. From a portfolio construction pov, this makes no sense. PS: Ben Felix indeed is a very solid source of reliable information. Also strongly recommend Ben Carlson’s books/blog.

[@JamesShack]

Love them both!

[@jamesdarby86]

Fantastic video, good insight. My only gripe - that hole in the wall behind you was triggering my OCD, literally take half a step to your right!

[@JamesShack]

Haha, tell me about it! Had to take a picture off the wall. On to better things now tho!

[@exilez99]

Ive been working my way through your videos which I am enjoying. I am new to investing (in the last 3 months) - its something I have discovered as Im about to hit 50 next month. For me investing isnt about creating income for retirement or achieving early retirement as realistically I cant invest enough to achieve that and I have an NHS pension which will be decent when I retire. Im hoping that over the next 15 to 20 years it will create a lump sum that I can use in retirement to buy a new car when I need one or fund a nice holiday etc. What Im enjoying about investing is - fundamentally - its more interesting/exciting than saving. Im finding it much easier psychologically to invest money compared to putting money into a savings account (and thats without the reality of money in a savings account depreciating due to the high levels of inflation). So far Ive just over 6.5k in a Vanguard ISA split across 6 ETFs that recreate the Lifestrategy 100 but with lower fees and less focus on the UK. Im contemplating whether in maybe 5 years time adding bonds and rebalancing the portfolio to be more like 80% equities / 20% bonds and then maybe shift that again at 65 to perhaps 40% bonds. This week I opened a General Investment Account on Freetrade so that I could "dabble" with individual stocks. Ive got £450 in there and will put a little bit in each month but my main focus will be my ETF's in my ISA. The individual stocks are fun to watch the gains and losses. Many of the ones Ive purchased are dividend payers but they are also solid well established companies with a track record of steady growth. They are not going to out perform the market but neither are they likely to drop by a huge %. I'll almost certainly end up selling some of them and buying different things over time - but thats part of what makes it interesting/enjoyable and will keep me engaged. I wont be putting large sums of money into individual stocks (unless I win the lottery!) but it is a chance to invest in some things like renewable energy funds and similar developments (eg electric car charging infrastructures) which feel like a gamble worth taking given the need to move to more sustainable energy sources & embracing electric vehicles. Really like your videos, will be watching everything you put out. Keep up the good work.

[@chrismckee2799]

This made me chuckle. In my case the KZbin algorithm led me from Ben Felix to you. Both saying lots of sensible stuff and debunking some of the myths and fads. You guys should collaborate! Thanks

[@JamesShack]

That's great to hear people are being suggested via him. I was watching Ben for a long time before starting this. Great guy, would be an honour to do that. One day!

[@jamesporter4969]

Damn it James, the more I learn about investing, the more I have to unlearn. Top video mate (and great name too).

[@JamesShack]

Cheers James, glad it was helpful. For some reason no one calls James, so much so that it sounds strange! Friends just call me Shacks.

[@jamesporter4969]

@@JamesShack Not gonna ask how many "Shack" jokes you get haha. Anyway, thanks again Shacks.

[@ZachGinnOfficial]

Love this video! Very informative! ✨✨

[@JamesShack]

Thanks Zach, I really appreciate it!

[@ramansharma8585]

Awesome possum!

[@mdapeebles]

Love that you focus on investing in yourself and aren't trying to pander and get the clicks - it'll help you keep the subscribers long term. I'm bought in as a not so young professional in London as the videos are helping my piece of mind and are helpfully answering some of the questions my inner-chimp is posing! Keep up the good work!

[@pmb9172]

I may have missed it but surely this applies to early stage investors and to an extent operating outside a tax free wrapper . Buybacks , and I only have experience of a very small number of stocks I own , where this has happened the buyback has often been at a very high price and the market has subsequently trashed the stock price , I appreciate the EPS has risen but cant help but feel I would have rather had the cash as a special div inside a tax wrapper . I am enjoying your videos and the clarity they bring along with the challenge to alternative opinions .

[@JamesShack]

That may be your individual experience, and it certainly can be true, if a company is in the position to do buy back it must be doing well. But companies often do by backs because they think their stock is undervalued, some even borrow money to buy back their stock if it’s undervalued. If you’re investing inside a tax wrapper, there really is no difference to you whether it’s a buy back or a dividend, as both are tax free. But you have more choice with a buy back. Actually that’s not quite true US stocks have a withholding tax of 30% (15% if your a UK investor and sign a W8-BEN form) on dividends so even if your invested in an ISA dividends you receive from US companies will be taxed before you receive them.

[@JamesShack]

And thanks for watching!

[@ioanadragomir5513]

Another great video, James!

[@JamesShack]

Thanks!

[@filippxx]

Great stuff. The quality of the content is great. people would have paid good money just a few years ago for this.

[@JamesShack]

Thank you!

[@AjitB07]

I kinda do both, but individual stocks make up a very small amount, march was a great time to get some of these so called quality stocks on sale

[@HamperedPath34]

@James - A small question. If you have invested over years into an ISA and then your dividend income within that ISA wrapper exceeds the dividend allowance (£2000 for 20/21). Am I correct in assuming that it would not be taxed at the dividend rate given its dividends earned within the ISA wrapper and therefore tax free? So if you are fortunate enough to make that dream £30,000 in dividend income a year within your ISA (through multiple years of maxing out your ISA allowance) that £30,000 when you withdraw from your ISA throughout the year will not be subject to dividend or capital gains tax? Sorry if this is a dumb question and I am completely wrong!

[@JamesShack]

That’s correct. No tax to pay on anything inside an ISA. It’s cool when I sometimes see people with £1m ISAs because it’s super hard to get to unless you’ve been saving every year and have good investment growth. But yer of of you had a £1m ISA, 30k in dividends would be achievable and you’d have no tax to pay.

[@HamperedPath34]

@@JamesShack Thanks for the very fast reply!

[@ZelenaZmija]

Good video, though what would you say about some of the more higher yielding investment vehicles such as BDCs, REITs, MLPs, and covered call ETFs. Each has their own risks associated with them of course but for some like QYLD which yields over 10% the main trade off is that it's basically structured for minimal/no capital appreciation but high dividends. Some of the other finance youtubers I've seen basically make the argument that if your investment objective is to not need to work ASAP, as opposed to maximum total returns, that's achievable via roughly 400k in some of these higher yielding strategies for roughly middle class life style outside of an extremely high cost of living area.

[@JamesShack]

Total return is almost all you should ever care about, the income or yield of an investment is largely irrelevant. That is unless you purposely want to create create an income instead of a capital gain for tax purposes. None of those products, other than perhaps Covered call strategies, would be effective as an entire strategy. But a combination of them, alongside a normal stock portfolio, may work if you think it will produce a better risk adjusted total return. Covered call ETFs are interesting. But QYLD has not produced anywhere near as good a total return a straight QQQ.

[@ColdAsHe11]

Thank you for your perspective and for an educational video. I found this in my search for differing opinions. I'm single, mid 40's, no children, have a large lump sum to invest, and just looking to travel and enjoy life. I'm not looking to make huge gains in the market, and, as long as I could earn enough income passively to cover my travel needs, while maintaining my principle investment balance, I'd be completely happy. I could always pick up the odd cash job along my travels. It does seem to good to be true (dividend income investing), but, it can't hurt to research while I continue to plan for an early retirement. What sort of advice would you offer for someone in my position?

[@maximilianemustermann815]

Perhaps you should look into what Jack Bogle taught and did. I forgot what that thing was called he recommended. It is like an ETF but harder to sell (and available for 100 000 dollars and up) so that you won't sell in a panic. I think it was an index fund. Also I once saw a video where he recommended an ETF that contains the whole US stock market, I think it was VOO. Sorry for being vague. I just want to say Jack Bogle was a good advisor and perhaps you could look into it. You are not in a hurry are you?

[@KTMFerr]

I love your channel, this was a great video. However, I noticed some of the "youtubers" you mentioned there pushing "Dividends" one of them was from an Australian channel that I also follow. That said, here in Australia, your dividends can be tax-free or eligible for a tax refund. Quoting the Australian Tax Office: "Dividends are paid out of profits which have already been subject to Australian company tax which is currently 30% (for small companies, the tax rate is 26% for the 2021 year, reducing to 25% for the 2022 year onwards). Recognizing that it would be unfair if shareholders were taxed again on the same profits, shareholders receive a rebate for the tax paid by the company on profits distributed as dividends." So, that said, you might even be eligible for a tax refund depending on your total salary tax bracket for the financial year. But same goes for the capital gains, if you hold the asset/share for more than 12 months you will be rewarded with a 50% discount on Capital Gains. I hold dividends ETF, but got agree if you do not have a big chunk of cash in the six figures at least it is not the way to go. I know this is for a UK audience, but if there are any Ozs here keep in mind your tax is diff ofc. I love to watch different investments perspectives, and this is a great video!

[@JamesShack]

Yes in Auz it seems like you have a lot of tax advantages, no CGT, dividends or inheritance tax! A great SUPA system and all-round higher levels of financial education.

[@mrcmdjd57]

James: Love the videos but I have a question. You said NOBL outperforms the full SP 500 by 3.3%. I looked up NOBL vs IVV and do not see this differential. Can you provide more explanation or a reference please? Thx much!

[@JamesShack]

It depends how far back you go. Over the last 5,10,15 years normal S&P 500 has outperformed, but over longer periods it has not. The problem is that all of these trends come and go in cycles, some of which last 15 years. These things do not work all the time, but on average, over a long enough period, we see trends emerge.

[@DrBenVincent]

Great channel, recently discovered it. To check my understanding… it doesn’t have to be that 50% of people over and 50% underperform the market right. In the extreme you could in principle have one guy taking all the money and everyone else loosing a small bit?

[@JamesShack]

Yes you’re right - technically it’s 50% of the £’s invested. Rather than individuals. The down side of this is that 90% of the £ are controlled by professional money managers - I talk about this here kzbin.info/www/bejne/e16nh3ekd6msqKM

[@mrcmdjd57]

What happens when you need to raise capital for living expenses right after a 50% market correction? Also, in the U.S. qualified dividends and cap gains are taxed at the same rate which is based on your income.

[@JamesShack]

You should never have to do that if you've done your cashflow planning correctly. The objective of cashflow planning is to ensure you're never forced to sell risk assets when the market is down. This could be as simple as keeping an emergency fund or, if you're retired, 3-5 years worth of expenses. So if the market falls you're not forced to sell.

[@torus186]

What happens if your porfolio is within your ISA, are these dividends all taxfree within the UK.

[@JamesShack]

Yes

[@willgoodfellow3144]

Just clarify when you say dividend investing are you talking about trading platforms like etoro, moneyfarm etc that KZbinrs keep pushing? Thanks!

[@JamesShack]

No, I’m taking about picking stocks just because they have a high dividend.

[@edwardkenworthy7013]

Thank you for covering the tax aspects. Doesnt this mean that you should obtain an income from stocks and shares by both selling shares and through dividends to maximise tax efficiency? Shouldn't you at least be using the £2000 additional tax free allowance for dividends? As an aside, in your video you say that you would pay £3000 tax on £30000 dividend income, but how? Nearly half is completely tax free and on the remainder you only pay 7% tax, which suggests the tax bill would be more like £1050. A lot less than the CGT liability, which I haven't checked, for selling shares. Corrected £105 tax to £1050, fat finger error.

[@JamesShack]

Hi Edward, Yes exactly. The first and most important thing is to invest in whatever is likely to produce you the best TOTAL return. Regardless of whether that comes from dividends or capital growth. The next step would be to structure you investments in a tax efficient manner, like you suggest, to make the best use of tax allowances. You then create a more reliable income by taking whatever natural income is sitting in your account, and then selling down whatever additional you need. I've actually had a lot of questions on this so I'm going to do a video on how to create an income from stocks and shares very shortly. On the back of my hand it comes out as £1,125... so two totally different answers! Let me try and dig out the actual calculations I used and come back to you.

[@edwardkenworthy7013]

@@JamesShack Typo, £1050. Calculated as 7% of £15k, which is £30K minus income tax allowances totalling £15K (rounded up so I could calculate in my head).

[@jkfishing1667]

If you are paid a dividend do you only have to submit it to HMRC when it generates more than £2000 that tax year? Assuming you don’t have any of your personal allowance left.

[@JamesShack]

Yep. You’ll then pay income tax but the dividend tax rates are slightly better than normal income tax. 7% BR, 32.5% HR , 38.1% AR. However £2000 in dividends is a lot from an investment portfolio, you need c£100k to generate that.

[@jkfishing1667]

Thanks for the response I’m going to start investing this year I think the safest option for me would be index funds and ETFs in an ISA account for the tax benefits.

[@JamesShack]

@@jkfishing1667 👍🏻

[@sarchmaster5779]

You should go on Ben's podcast!

[@Naha-ir9mi]

Hater , JK. I think it is interesting to see the other side of the argument Thanks

[@JamesShack]

Thanks for watching Nahum!

[@LiamR90]

Can you do this again without the tax bill. Most dividend investors in the UK use ISAs to invest.

[@lip124]

I just care about growth nothing more since I'm here for the LONG run till retirement just needs some place to grow my money, just struggle since its my first time investing.

[@JamesShack]

Don't worry, keep learning you'll get there.

[@narnasqueneth]

Let's pump this video up! More people need to see this so they aren't just duped into making gung-ho youtuber influencers rich from referral links

[@LiamR90]

I'm torn. I know growth beats income and you don't use your ISA allowance with growth where as you do reinvesting dividends. But at the same time I've recently had a lot of family members die before reaching 60 and I'm wondering if some money should be enjoyed sooner rather than later.

[@johnbrandon1658]

Great video , but please don’t swear in future videos , was going to show it to my kids but can’t now. It’s not big and it’s not clever lol

[@JamesShack]

noted.

[@GordonHutchison]

Is it established in the UK that income from accumulated fund drawdown (selling acc units) can qualify as income for the purposes of IHT exemption of 'regular gifts from excess income' (when compared to gifting from dividend derived income)?

[@JamesShack]

No. Acc units work in a similar way to Dis unit, but with Acc the dividends are just reinvested each year automatically. But still pay tax on the dividends as if you had received them in the tax year they were paid by the company. It’s known as a notional dividend. However Notional dividends do count towards ‘excess income’ calculations just as Normal dividends do. The selling of Acc units will only ever count as a gain and attract CGT.

[@GordonHutchison]

@@JamesShack Thank you for your reply, I wonder if a 'synthetic' (e.g. swap based) ETF such as 'iShares S&P 500 Swap UCITS ETF ' is a way of avoiding such notional dividends and thus push the returns towards CGT rather than income tax? Apologies if I am well out into the weeds now!

[@paulthorpe766]

Divi' Divvy's😉

[@hl3641]

Good job but Truth is always plain and less entertaining than BS…

[@robclough9826]

$$$$

[@miri9600]

When you sell your shares you are losing your PRINCIPAL, when you receive dividends you do not. Warren Buffett does not sell his principal.

[@JamesShack]

That is incorrect. kzbin.info/www/bejne/qKrPe5aBe76Ka6csi=VIH3qjedWv-cyepR

[@miri9600]

I know Ben. He has very good insight. But this doesn't explain that you are not losing your principal by selling shares. If you own 100 shares of stock A and you have to sell 20 of it to generate income you are worse off 20 shares. These 20 shares more could pay you more dividends.@@JamesShack

[@markchapman9468]

I didn't like this video. Why? You have assumed the audience is full of young people. I am retiring in 6+ months time. Therefore dividends are important to me although I have purchased them via funds rather than single companies. I have recently bought growth funds that give no dividends! My investment are funds and they are all within my Pension and therefore, I pay no dividend tax. We are possibly close to a correction and therefore buying growth funds may not be a good idea. Anyway, I have subscribed to your channel tonight and do really like your channel so keep up the great work.

[@JamesShack]

Hi Mark! Thanks for the sub. Why are you looking specifically for dividends?

[@markchapman9468]

@@JamesShack - I am not. I have purchased growth shares like Polar Cap Biotech and Global tech almost 2 years ago plus Aegon Global Sustainable and all have outperformed the market. More recently (last 4 months) I gone back to purchasing more income funds. I will be accessing my SIPP next year, so will need some income. Hopefully, I can live off 3% of the SIPP plus property.

[@mrbushpilot]

Literally lol'd at "passive fucking income"

[@henwood122]

It’s a shame you get get more views for spitting facts

[@skinnymoonbob]

Dividend is money from your own wallet.

[@miri9600]

so does money from selling your shares

[@jamesevans2507]

I've been sceptical of the divided cult from the beginning. KZbinr: And so you will be making £12 pounds per year from dividends Me: .. £12 is dogshit KZbinr: Ah, but it's £12 you didn't have to lift a finger for! Me: Ok... but it's still just 12 fucking pounds It's like they don't get I'm trying to invest to achieve financial freedom, not to buy myself a few extra coffees every year.

[@JamesShack]

Yep it’s literally just click bait. “£1000 passive income”, sure... you just need to find £250k first to invest!

[@samr8603]

@@JamesShack being a little disingenious there James. You know with dividend investing you do not need to put the full £250K upfront. It grows with DRIP and compounding over years. A lot of people use dividend investing in solid companies that have paid out increasing payments each year. Not the high yield dividends that devalue other time. Once you get past roughly the £100K amount compounding really begins to take off. Eventually you do not even need to add anymore to the amount and let compounding and DRIP do it's magic. If also the investor does some research into the history of the company and does not put all their eggs in one basket dividend investing is a good addition to your pension and if lucky your spouse/significant others ISA/pension, well can have a very happy early retirement.

[@dhruvmaurya347]

To be honest, I didn’t get this at all 😂

[@TB-us7el]

you were very sweary back then 😆

[@saiyjin98]

This guy doesn't know that qualified dividends are taxed at the capital gains rate instead of the ordinary income rate. If you need regular income to live off of right now, dividends are great because you don't need to manually sell stocks every month.