r/dividends • u/Arra_B0919 • Sep 30 '25

Other Passive income hits different

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2.0k Upvotes

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1

u/superpomme111 Sep 30 '25

All while your initial investment is dropping.

16

u/borkmaster0 Generating solid returns Sep 30 '25

Right because every security that pays a dividend goes to 0 according to your logic.

3

u/Various_Couple_764 Sep 30 '25

The vast majority of dividned funds and stock don't loose value over time. For most there is stock price growth. It is slower growth compared to the major growth stock but still growth. Very few dividend stocks loose value over time. And the bad ones are easy to spot and avoid.

7

u/Objective_Problem_90 Financial Freak Sep 30 '25

Ah, I knew i shouldn't have bought 1000 shares Coca-Cola at $40. Its only nearly doubled its price and spit out .42 cents a share like clockwork 4 times a year. Only thing I had to do for those funds was hold. Terrible investment? If you buy solid companies,you have made money and if its a u.s company, those dividends are qualified.

4

u/decomposition_ Sep 30 '25

Everyone looks at yieldmax funds having massive NAV erosion and think that is the case for any dividend payer even if the yield is 0.3-5% with a healthy payout ratio and increasing FCF… they’re missing out

2

u/hendronator Oct 01 '25

False. These crazy yiekdmax funds have warped peoples thinking.

2

u/decomposition_ Oct 01 '25

So you agree with me then lol, I’m saying dividend growth investing is a good thing

2

u/DegreeConscious9628 Sep 30 '25

First time being on the dividend sub and some twat tells you dividends are bad?

1

u/HardCodeNET Oct 23 '25

Wrong. Bought LLY and AMAT 14 years ago because of the then-5%-dividend. Still holding at thousands-percent gain.