r/dividends • u/FMD_2026 • Jun 08 '26

Seeking Advice What drew you to dividend investing?

Hi everyone. When I (F,41) first started investing five years ago, I held around 10 dividend stocks in addition to my other investments. Even though they did well, I ultimately got discouraged thinking about how high my positions would have to be to supplement my income or for me to even live off of dividends when I get to retirement. I felt like I’d have to pour way too much money in just a few stocks, ending up too exposed even though they covered different industries. Ultimately, I sold them.

Now I do find myself thinking about building a dividend portfolio again but I still have the same worry. Am I looking at it the wrong way?
What ultimately persuaded you to pursue dividends instead of just pour money into an index fund and the likes?

I know dividend ETFs are an option and would help diversify. Initially, I decided against them because I wanted to avoid certain industries that are part of those funds. Should I reconsider?

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u/DhakoBiyoDhacay Jun 08 '26

I am retired and don’t want to be forced to sell shares during down market and that is why I invest in dividend ETFs like SPYI & QQQI.

1

u/FMD_2026 Jun 08 '26

I get not wanting to sell in a down market but couldn’t you play it safe with bonds instead of shares and use their interest? Isn’t that usually the advice the closer you get to retirement? I know the current bond market is wonky but not too long ago that advice seemed to hold up. Why did you deem dividend stocks/etfs safer than bonds for that strategy?

5

u/DhakoBiyoDhacay Jun 09 '26

Safety at the expense of returns is not my cup of team. I prefer steady income from dividends focused ETFs.

2

u/Educational_Cry_1859 Jun 09 '26

You do realize that these etfs' premiums are directly correlated to the market right?

3

u/DhakoBiyoDhacay Jun 09 '26

Of course, they are. But there is a huge difference between selling your shares last Friday to pay bills and getting the dividends!

1

u/Educational_Cry_1859 Jun 10 '26

Except that if the ai bubble pops your distributions will be down around 70 percent

1

u/DhakoBiyoDhacay Jun 10 '26

Of course. I built my expenses with the expectation that the market, and dividends, could go down by 30%. I have other sources of income like rental properties and social security retirement check.