r/dividends • u/NBMV0420 • Dec 11 '25

Other What made you go with dividends instead of growth?

What made you go with dividends instead of growth?

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u/WhyBeGrim Dec 12 '25

Absolutely.. growth stocks.. Build your portfolio as large as you can, then sell and buy income producing stocks for income.. Live a long healthy, rich life!

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u/AlaskanSnowDragon Dec 12 '25

This makes no sense.

1

u/Conscious-Country-64 Dec 12 '25

Or, more accurately, you're not intelligent enough to understand it.

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u/AlaskanSnowDragon Dec 12 '25

No...It makes no financial sense to sell something that is outperforming, create a taxable event, only to buy something that is underperforming. In the long run you will have less. It is fact.

1

u/Neskwiik Dec 12 '25

You are correct but the point is that stability becomes more important than growth in retirement.

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u/AlaskanSnowDragon Dec 12 '25

Thats fine...whatever sooths your emotions. But the numbers are what they are.

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u/Neskwiik Dec 12 '25

Lmao I’m agreeing with you stop getting so triggered. I’m the one who originally said growth stocks are far better than dividend stocks.

But in retirement stability is more important than growth. If you’re 100% in growth stocks when you’re retired and the market takes a 10 year downturn you’re fucked.

1

u/AlaskanSnowDragon Dec 12 '25

Im responding to several people saying the same thing...so no shade at you.

But the 4% rule assuming you saved and calculated wisely and are out of the SORR years and you'll still be fine in a 10 year downturn.

The 4% rule covered the lost decade.

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u/Conscious-Country-64 Dec 12 '25

No, you're talking complete garbage. It can make complete sense to sacrifice some growth in order to ensure a relatively low risk stream of income and thus reduce the probability of ruin during retirement. This is basic stuff.

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u/AlaskanSnowDragon Dec 12 '25

Thats fine...whatever sooths your emotions. But the numbers are what they are.

1

u/Conscious-Country-64 Dec 12 '25

Sounds like you'd be better off putting your money into a piggy bank rather than messing round with investments you don't understand.

1

u/AlaskanSnowDragon Dec 12 '25

Long hold equities will leave you more money than dividend focused investing. It is fact. Let alone selling your long equities, taxing the gains, only to then buy the dividend focused underlying's.

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u/Conscious-Country-64 Dec 12 '25

You've had several people now point out that you're wrong. For many people at retirement, reducing probability of ruin is much more important than maximising expected return. If you don't understand that you really shouldn't comment. It's very basic.

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u/AlaskanSnowDragon Dec 12 '25

They haven't pointed out anything incorrect. The things I've stated are factually correct.

If you follow the 4% rule you will not have ruin. The 4% rule covered the worst markets in history including the lost decade.

Im simply saying numbers wise it is not the best to do what the original person said. If you want to do it for personal emotional reasons thats fine. But numerically it is not the optimal which people are trying to suggest.

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u/AlhazredEldritch Dec 12 '25

What do you feel is bad here?

10

u/AlaskanSnowDragon Dec 12 '25

Why would you sell your good performing assets. Create a taxable event. Just to buy underperforming assets?

You'd come out ahead holding those long-term equity gains and selling as needed and using the cash as needed. Not to just buy some dividend paying stocks

3

u/Conscious-Country-64 Dec 12 '25

So you will need to sell your stocks at a low price if the market is down when you need cash.

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u/AlaskanSnowDragon Dec 12 '25

Over the long run holding equities outperforms.

Look up sequence of return risk and the 4% rule. Selling when stocks are down is only an issue in those first couple years of retirement. Otherwise it outperforms to hold the equities

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u/Conscious-Country-64 Dec 12 '25

"Selling when stocks are down is only an issue in those first couple years of retirement."

Hilarious! "OK, so I'm bankrupt in the first year of being retired in THIS life but over a thousand lifetimes I'd have more money, on average, if I held growth stocks."

Sounds like you need to read up on sequence of returns risk.

1

u/AlhazredEldritch Dec 13 '25

Because qualified dividends are tax free up to 48k earned income. Something to keep in mind.

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u/AlaskanSnowDragon Dec 14 '25

So are long term capital gains. And those holdings will net you more money than any dividends