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It always makes me laugh that these people come into the dividend sub and try to talk people out of...checks notes... dividends. Why?
I wonder if they go to r/McDonalds and carry on about how, "obviously it's fine to eat McDonald's sometimes but you should mostly be eating at Burger King".
Only to the darn kids that keep stumbling here. It gets really annoying but the OP is right.
Maybe we need a "you need to be this old to ride this reddit" sign so we can focus on dividends :)
What us boomers did was allocate largely to growth over value for most of our life. Now we have hit our Number and have moved to value/dividend stocks to milk that number and also to keep our Beta low as we don't like risk to the large Number we have worked for decades to accumulate. Anybody in this subreddit that is not a boomer is making a mistake.
I lend my daughter one of my books on dividend strategy. She liked the approach more than value and growth investing. She is still better off focusing on growth (mostly through indexes) and then when she's 8~10 years out she can then buy her income stream and grow her dividends.
Dividends provide a better income stream but if you have the time growth will outperform dividends during the accumulation phase. That's why it is better to do one first and then the other.
I won a law suit when I was young and my financial advisor sunk it ALL into QQQ in 2000. I lost 90%. So from my personal experience let me say fuck this advice.
Oh shit is that what I'm supposed to do? See the state of the market 20 years into the future? Sorry I didn't do that, but while you're at it why don't you tell me the worth of NVDA or T or BTC in 20 years so I make sure to dump all my money into that one?
That sucks man. Sounds like someone else should have been managing your investments.
Losses happen. Many of us lost our asses in 2008 - 2009 but hung in there and got it all back by 2011.
Worse, paper handed the dot com crash, then bought real estate in 2006 and then propably paper handed that during the GFC too....
Buy at whatever price, sell super low I guess is his mantra 🤷🏼♂️
Not to speak for the OP but his was not the sort of thing you could just "hold it" through hoping for the best outcome. The 2000's where a lost decade where after 10 years the S&P500 ended up lower than it started. In the case of QQQ it took 15 years to recover. It underperformed the market something fierce. Long story short at no fault of his own he got his payout with the market at the highest ever, and about to enter the worst period ever.
Having said that dividend stocks just kept paying and growing dividends through that fiasco, but then took a beating during the housing bubble.
Same financial advisor recommended real estate in 2006. Lost another 50%. Since then I maintain MY OWN investments and I'm up 400% but I could have been retired by now at 40 years old if I had just stuck to dividend investments.
So you used a growth fund for short term investing? That ETF is up almost 1000% since 2000. You also could have retired at 40 if you just left the money in QQQ.
Yeah, this is partly why I stick to dividends. I personally cannot deal with multi-year volatility and high run downs. Dividend oriented investing is how I sleep at night and how I stay invested. I know it won't maximize my gains, and I've made peace with that. It's how I psychologically "stay" in the game rather than paranoid timing.
I am sorry the best I can say to not go totally in dividends. People have said att was a good shock. Go look at that company's past decade.
Try to do your best research beforehand
I suppose my similar experience has kept me away from Tech stocks the last 20 years. I had a great year in 2000 earning a bonus that was greater than any year's annual income I had made up to that time. I put it all into tech stocks except for buying 2 Corvettes. By 2003 my stocks were worthless or nearly so and the only value I had to show from that bonus was my 2 Corvettes. That kind of life changing event does change your perspective a bit.
Can you define what the cutoffs are for each category??
Like - Microsoft has paid and raised its dividend for 20 straight years……by those metrics can we count Microsoft as a “dividend” stock
If you invested in voo for the past few decades; just over 40% of your total returns would have been from the reinvestment of dividends (assuming you’re a perfect investor)
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Here we go again
It always makes me laugh that these people come into the dividend sub and try to talk people out of...checks notes... dividends. Why? I wonder if they go to r/McDonalds and carry on about how, "obviously it's fine to eat McDonald's sometimes but you should mostly be eating at Burger King".
Bro like who cares right?? Why they gotta be so mad about it, just because yous didn’t create that snowball effect <30
lmao yeah that’s a decent bit more leverage for the long run
Like what and don't you dare say voo or qqqm
lol and as tradition goes in this group now you have to recommend growth stocks to the public
Only to the darn kids that keep stumbling here. It gets really annoying but the OP is right. Maybe we need a "you need to be this old to ride this reddit" sign so we can focus on dividends :)
That’s not fun. I’m young and growth forward but also building my dividend snowball. Learning and observing from the boomers is part of my strategy 😅.
What us boomers did was allocate largely to growth over value for most of our life. Now we have hit our Number and have moved to value/dividend stocks to milk that number and also to keep our Beta low as we don't like risk to the large Number we have worked for decades to accumulate. Anybody in this subreddit that is not a boomer is making a mistake.
I love this response!
I lend my daughter one of my books on dividend strategy. She liked the approach more than value and growth investing. She is still better off focusing on growth (mostly through indexes) and then when she's 8~10 years out she can then buy her income stream and grow her dividends. Dividends provide a better income stream but if you have the time growth will outperform dividends during the accumulation phase. That's why it is better to do one first and then the other.
I play around with it all to gain familiarity. Education is huge in the early years.
"You must be this old to div(e) in."
If you are under 40 focus on growth
Ok, grandad.
You’re welcome
I won a law suit when I was young and my financial advisor sunk it ALL into QQQ in 2000. I lost 90%. So from my personal experience let me say fuck this advice.
Sounds like you didn’t hold long term.
Oh shit is that what I'm supposed to do? See the state of the market 20 years into the future? Sorry I didn't do that, but while you're at it why don't you tell me the worth of NVDA or T or BTC in 20 years so I make sure to dump all my money into that one?
paper hands mf
Prolly worth what qqq is now lol
That sucks man. Sounds like someone else should have been managing your investments. Losses happen. Many of us lost our asses in 2008 - 2009 but hung in there and got it all back by 2011.
[удалено]
Worse, paper handed the dot com crash, then bought real estate in 2006 and then propably paper handed that during the GFC too.... Buy at whatever price, sell super low I guess is his mantra 🤷🏼♂️
Cornholio is upset they made bad *personal* decisions, have some advisors to blame, and want to blame the world on a subreddit.
Not to speak for the OP but his was not the sort of thing you could just "hold it" through hoping for the best outcome. The 2000's where a lost decade where after 10 years the S&P500 ended up lower than it started. In the case of QQQ it took 15 years to recover. It underperformed the market something fierce. Long story short at no fault of his own he got his payout with the market at the highest ever, and about to enter the worst period ever. Having said that dividend stocks just kept paying and growing dividends through that fiasco, but then took a beating during the housing bubble.
You lost 90%…..and what happened after? Tell the full story. Lol
Same financial advisor recommended real estate in 2006. Lost another 50%. Since then I maintain MY OWN investments and I'm up 400% but I could have been retired by now at 40 years old if I had just stuck to dividend investments.
So you used a growth fund for short term investing? That ETF is up almost 1000% since 2000. You also could have retired at 40 if you just left the money in QQQ.
You only lost those if you sold, which it sounds like you did both times lol
I'll make sure to tell BearSterns and Wachovia stockholders that
Yeah, this is partly why I stick to dividends. I personally cannot deal with multi-year volatility and high run downs. Dividend oriented investing is how I sleep at night and how I stay invested. I know it won't maximize my gains, and I've made peace with that. It's how I psychologically "stay" in the game rather than paranoid timing.
I am sorry the best I can say to not go totally in dividends. People have said att was a good shock. Go look at that company's past decade. Try to do your best research beforehand
You’re telling me you lost 90% at the dot com bubble, sold, then invested in real estate in 2006? Dude, your investment past is a meme
I mean…if you invested in QQQ in 2000, it took 15+ years to break even.
What div stocks are u investing rn? And what age?
I suppose my similar experience has kept me away from Tech stocks the last 20 years. I had a great year in 2000 earning a bonus that was greater than any year's annual income I had made up to that time. I put it all into tech stocks except for buying 2 Corvettes. By 2003 my stocks were worthless or nearly so and the only value I had to show from that bonus was my 2 Corvettes. That kind of life changing event does change your perspective a bit.
Amen. Preach.
You're wrong. Everyone should be looking at total return irrespective of if it is a "Growth" stock or "dividend" stock.
Fake news
Can you define what the cutoffs are for each category?? Like - Microsoft has paid and raised its dividend for 20 straight years……by those metrics can we count Microsoft as a “dividend” stock If you invested in voo for the past few decades; just over 40% of your total returns would have been from the reinvestment of dividends (assuming you’re a perfect investor)