Why Should I Invest in Dividend Income over Growth?

[@UsernameAmos]

I’m not retired yet, but here’s why I choose dividend investing for my retirement strategy & why I prefer dividends over growth investing.

[@S3XYTesla369]

Whats your favorite dividend growth stocks right now?

[@OhhHellNoYouWont]

I run a mix. Growth stocks/ETFs in my Roth and 401k. I run dividends in my Individual investment account. Seeing the payments come month after month keeps me in the zone. Works out best for me.

[@StanHopson]

I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!!!

[@curious-chris]

SCHD has one year return about 3.5%, plus the 3.5 yield. Very underwhelming. Let me help you. JEPQ, JEPI, SVOL. You're welcome.

[@MHousley]

@@curious-chris isn't SCHD more tax efficient than JEPQ?

[@AlmightySimon]

@@curious-christrash suggestions and incorrect info

[@michaeldawn442]

I'm a Dividend Investor now after losing, $60K chasing growth stocks. I needed this video four years ago. Fortunately, I turned my ship around. Needless to say I agree with you. 98% of my dividend stocks and ETFs are green and producing monthly and quarterly dividends! What a difference...

[@UsernameAmos]

It's okay. A lot of people got carried away by the 2020 'growth stock frenzy'. But I think it was a cheap lesson because now we have the rest of our lives to make sound, logical dividend decisions!!!

[@catherinerea3569]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.

[@organic3132]

Buy low, sell high.

[@AlmightySimon]

Contact a well qualified financial advisor

[@null.ru.1337]

@@AlmightySimonscamming ?

[@raygrenade1697]

i agree that its easier to fake growth in a growth stock, bc u rely on things that don't exist yet. cant fake a dividend payment

[@UsernameAmos]

Oh, I really like that analogy. I remember during the pandemic, EV companies were all the rage. The CEO of Lordstown Motors would wear a hard hat ⛑️ whenever he was interviewed on TV and would claim all sorts of progress in their cars. Turns out they never even made a car and faked their whole operations 😂

[@georgesontag2192]

Yes you can fake a dividend. Wall Street drops the price of the stock the same amount of the dividend. Wall Street has to do that so you don't but the stock the pay before and sell the next day. The dividend gained you nothing but a tax bill. Buy both QQQ and SCHD and test for yourself in 5 years.

[@eu7435]

The dividend payment is real, but how you got it is another story. That dividend could have been conjured by the company borrowing.

[@raygrenade1697]

17:45 yes sir ! we all have our reasons, very few act on it. for me, the financial crisis robbed my family of love , and stole part of my childhood.

[@UsernameAmos]

2008-2009 was rough for me. Sorry to hear you went through a similar experience.

[@dral22]

I will always be a dividend investor "For Life." If it weren't for dividends, i wouldn't be interested too much in investing in the stock market. I'm not investing for the sake of investing or to sound cool. I'm investing so that i can have a comfortable life as i grow older. Not to mention the monthly and quarterly income that's helping me combat the high cost of living. My ultimate goal is to eventually quit my 9-5 and travel while my investments are doing the work for me. God bless the creator of this video. New subscriber. 🙏🏾

[@JEEntertainment89]

Loved the video, really well written and I liked the style, keep it up! Your humor and tangents really reminds me of the Econ professors I would have for my required Econ courses when I studied engineering. That's a good thing because I loved every one of their lectures I'd love to see what you have in the future!

[@UsernameAmos]

Thank you so much.

[@bossballheaddawg2588]

also, i invest in etfs and mutual funds, a little better than individual stocks. however, i invest in dividend stocks too. i actually do both. you just said it! gowth that pays dividend!!!

[@TheCashFlowCompounder]

Great way to do it! Mixing ETFs and Mutual Funds is a great way to ensure you stay in the market for a longer term, which is where real returns are generated!

[@wisulliv]

Total return is the true measure. Dividend stocks finish 2nd. I need more not less.

[@SpencerInvests]

Great video! I always enjoy hearing why dividends are great, even if I've heard it before!

[@Blubbha]

Agree on it. But Inwent fromnsingle stocks to balanced etfs. The reason is simple for me. I rather build aanother income stream instead of hasing singles stocks and move all the time my portfolio. Beside my salary thos seems to be the way for me. Steady income + dividends reinvesting + other projects to increase investment. Now I am on 640k net worth worth woth 37y with a family of 5 and I get 450 usd/month net dividends with 200k portfolio. Dont chase too much investing opportunities and chase instead fogure iut to build another income stream. Gibes you new skills and a higher amount to invest.

[@JoeFromSomewhere2303]

Google is a dividend stock now! Love watching the big 7 all turn into dividend paying stocks! Great video! Growth stocks theoretically could deliver better returns but dividend stocks encourages "buy and hold". I think many of peoples biggest missed opportunities are by letting go of a good stock too soon.

[@michaelb.8953]

It took me a few years of the 100% truth this video imparts to us. I am currently in the process of moving my portfolio over to dividend investing.

[@Pegaroo_]

How about using growth stocks to get you to your retirement amount quicker then switch to dividends for the stable income. Get the best of both worlds

[@touchofgrace3217]

That is what I am doing.

[@Ciborium]

Joseph Carlson did a video recently where he showed that the "normal" return of the stock market is actually abnormal. 80% of the time, returns will be higher than "normal" or negative. Only 20% of the time does the stock market return between 1% and 10%.

[@UsernameAmos]

He is not wrong. Sometimes VOO can go up by 25% in a single year. Other times, it can go down by 20%. The beauty of math is, once we average it out over a long horizon of say 40 years, then it computes an average of about 8% to 10%. Although, I do feel bad for first time investors jumping into the stock market when VOO decides to go down by 20% lol.

[@o.c.g.m9426]

Hey Youngblood. Great video always. Try reading One up on Wall Street by Peter Lynch. I've read it twice

[@TheCashFlowCompounder]

I've read it as well and it totally deserves a read! Loved reading his thoughts about the circle of competence and how individual investors have a real edge

[@UsernameAmos]

I love that book - it goes to show that the common person has an advantage on Wall Street. We are the consumer, we are the "average" person, we see what reality looks like, and what is good or bad on the daily basis. Thus, invest in what you know! (if I had to sum up the book in one sentence)

[@TheCashFlowCompounder]

Completely agree, well said! And by the way, great video! @@UsernameAmos

[@o.c.g.m9426]

​@@UsernameAmosWell said ✊🏽

[@chimchu3232]

Is the channel name a reference to Joseph Carlson? XD great video, earned a sub

[@henrybuonaparte]

Thank you for a good video! Keep It up. 👍🏻

[@ColourRevolution666]

MSCI, ITT, Parker Hannifin, Oracle, Elevance Health, Domino’s Pizza, Marsh & McLennan, Booz Allen Hamilton, UnitedHealth Group. This are double digits dividend growers.

[@TheCashFlowCompounder]

Domino's Pizza and United Health are great! Would add SPGI to the list. Although it currently has a very small dividend I think they will be in a position to really boost it in the mid term!

[@Melanie9908]

I have been considering MSCI

[@TheCashFlowCompounder]

Great stock! Tough to get it at a good price tho@@Melanie9908

[@ColourRevolution666]

@@Melanie9908 its subscribtion based, you will make money.

[@AndyBHome]

If it's in here I can't find it, but this presentation overlooks that growth stocks outperform the 8% average growth standard and dividend stocks underperform it. So doing a comparison where two portfolios have different types of stocks but the same long term growth rates is not realistic. The truth is exactly as this video characterizes at the beginning - growth stocks offer higher overall returns, dividend stocks offer more stability. Growth is better over the long term. Dividend is better when you start living off of the investments. If you have enough invested that you can live off of just a couple percent of your portfolio, you can live on growth stocks forever and get much richer in the end. But that's closer to one percenter levels of investments, or someone who lives like a monk, but both of those types of people do exist.

[@mrx2062]

Or you keep stocks until they start paying dividends. Meta, Booking Holdings just initiated a dividend which will likely grow quite quickly now.

[@UsernameAmos]

Exactly! I keep GOOG in my portfolio for that reason. Great growth and I know the dividends are coming (eventually)

[@mrx2062]

@@UsernameAmos Usually the stocks which recently initiated dividends are much more healthy in respect to growth and payout than some very mature ones, like 3M or Diageo.

[@karma1507]

I'm guessing companies are aware of the fact that if they pay dividends, a lot of people will invest them for more. If that's true, you could consider it a growth strategy since it ensures their stocks will always have buyers.

[@dominiquetheeasyminimalist]

Are you from the Joseph Carlson channel? The compounder with cheese was a running gag 😁.

[@UsernameAmos]

I have watched his videos here and there!

[@jayinla228]

Cool vid can you please show the math on your example at 17:21 ? New guy here and i didnt quite get that.

[@UsernameAmos]

My fault! I recycled a slide I made from a previous video. I go through the details of the math in this video: kzbin.info/www/bejne/eoXcimNtj6tooqs Hope that helps!

[@lucauau]

I totally agree with you.. but is may also happen to dividend stock to drop, to cut dividend, to loss its position, etc etc. Maybe it’s much less probable.. but also this kind of investment has its risks. Stock selection is essential in this area as well portfolio maintenance 😊

[@UsernameAmos]

You are correct. It is important to stay on top of your companies to make sure they are still high quality. Even if it is Apple, Microsoft, Costco, etc.

[@karma1507]

12:40 😂 it's hilarious to think about this being a real scenario. I'm gonna stick to my dividend stocks and hold for my whole life.

[@CardsHound]

So is holding QQQM worth it or just put this into my SCHD? Most of my money is in VTI

[@UsernameAmos]

Honestly, I think this video will help answer your question: kzbin.info/www/bejne/bnSrpHR5r9GqpJI I think somewhere in the video, I even rank my favorite ETFs haha.

[@MATIvmr]

What a nonsense, turned off after 5min 30s, you’re saying that you might be faced with selling part of portfolio in marked downturn lol but you’re not mentioning that dividends aren’t forever guaranteed either nor that they can be cut in downside market too. Dividend portfolio isn’t a winner compared to growth portfolio, selling shares yourself or having dividends paid automatically is literally the same, if you had 10£ and you put 1£ from left to right pocket, you still have 10£ overall lol.. also growth investing accelerates and takes over dividend investing after 15-20yrs+

[@gorkemvids4839]

That is bs. Taking the profit is not equal to selling a portion of your business, cow, or farm.

[@maguilla]

Dividends don’t lie

[@Michael-DS]

Hey! I'm not sure your excel spreadsheets at the begginning are an apples to apples comparison. In year 1 for dividends, you take $28,228.50 in dividends. In year 1 for the growth, you take $32,400 out as a "dividend" Because you aren't taking out an equal amount in both scenarios, of course growth will perform worse since you are taking out more at the beginning which hurts the compound growth.

[@UsernameAmos]

I appreciate the call out. I think my logic at the time is that it's impossible to do a 1 for 1 comparison because each strategy is so different. So I tried to show the difference between a smaller dividend yield with a smaller rate of return (5%) vs selling assets to create dividends with a bigger rate of return (8%). Forgetting the numbers for one second, I think the overall priorities are important. For dividend investors, you don't sell any of your shares. For growth investors, you sell your shares to generate income. I could run the numbers again to do a 10% rate of return for growth investors in lieu of 8% but their method doesn't change. Either way, both styles are correct. Dividend investing or growth investing. As long as one is investing!!

[@Michael-DS]

@@UsernameAmos I see your logic, yes. It actually is possible to do a closer comparison - One where the growth portfolio withdraws the same amount as the dividend portfolio in each year, then compare ending values. I compared SCHD to VOO for another youtuber Kamikaze Cash and yes I had to pain-stakingly make sure the dividends matches the share selling! Anyways, we both know investing is important for people. I just like to make sure information out there is accurate :) I can share my numbers so you dont have to re-run numbers if you prefer.

[@UsernameAmos]

yes that would be great. I don't think I have the spreadsheet from this video 😢

[@Michael-DS]

@@UsernameAmos hmm I tried updating my bio with a way to contact me. Is there a better way to share the google sheet?

[@UsernameAmos]

I found my original spreadsheet. And I ran the numbers again and again. With the growth and dividends having the same withdrawal in the first year. Its the exact same results. Growth wins in the first 10 or so years and then dividend investing catches up. I tried it with equal to, less than, and in this video, greater than. Its the same results, but I appreciate your call out and trying to show me your spreadsheet

[@tvlookplay]

Do you have another fitness KZbin channel? Voice sounded the same

[@UsernameAmos]

Unfortunately, I don't run a fitness channel haha. Not yet anyways.

[@TheSmartLawyer]

Any dividend startegy so needs an allocation of bonds, and it is important to have funds in VOO lr equivent ETF or mutual fund to protect yourself and also focus on total return

[@bossballheaddawg2588]

I had over hald my portfolio in schd, 1450 shares. the capital barely grew last year when some growth etfs exploded soe bringing back 65 percent. i cant afford to have that much money in an investment and only get 4000 in a year for dividends only. growth for me! before retirement you them transition to dividends

[@eu7435]

Yesszzz. Bring back Marco Polo, Netflix!

[@Antandthegrasshopper]

You know if all else fails you’ve a good chance being a stand up! 😂

[@stuinvests]

Dividends never return as much as growth stocks or ETFs.

[@vinichi3014]

Doesn't matter you never have to sell your position on a dividend stock unlike a growth stock

[@georgesontag2192]

I invested for years targeting dividends. I liked the monthly dividends from Reality income, PEY, and other stocks. Problem was I could not keep up with QQQ, VGT, VUG. Growth was a better strategy. SMH was up 30 % per year, SCHD paid 3.5% dividends..... guess who won after a couple of years ? . Dividends are not as good as everyone thinks.

[@UsernameAmos]

Exactly. That's why at the end of the video I disclose my personal risk profile and strategy. I do growth AND dividends. I see the beauty in both strategies :)

[@gorkemvids4839]

Growth stocks are like expensive diamonds. And they say it'll gain more value in future. But it will default in economic collapse. Barely buys few breads. Dividend stocks are like fruit trees. They'll be boring but they'll keep feeding you in economic collapse.

[@UsernameAmos]

Great metaphor. I plan on making a video in the future talking about exactly that. I held onto dividend stocks that put me in the "red" for a few years but now i'm in the green and the entire time, I got paid dividends!

[@Melanie9908]

100%…LFG Netflix bring back Marco Polo

[@UsernameAmos]

GOAT Era of Netflix.

[@jray5363]

Nice or not, that FU MONEY IS what it’s all about! That’s what freedom tastes like! And that’s what they’ll say to you when the next worker ant comes along to take your place!

[@UsernameAmos]

The worst feeling is when the company hires your replacement because they can pay them less and they expect you to "train" your backfill before they fire you.

[@PassiveIncomeInvestor]

good old bipolar dividend investors shit on growth the whole video and flip flop at the end when you could just own an index that does both. Besides name a dividend stock that hasnt wasted billions on shitty projects lmfao MO, HD, PEPSI, JPM LMFAO but googles up above all of them

[@shawncarter7509]

lol doo doo

[@autobotdiva9268]

dividends for the win VYM, SCHD

[@UsernameAmos]

Team Dividends!!! (slow & steady wins the race)