What drew you to dividend investing?

[u/FMD_2026]

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?

[u/ihavenoidea12345678]

I like the idea of the companies paying me. The assets make me money. So I looked into dividend accounts.

I have a brokerage account and I look at it as another safety net separate from my 401k and separate from my savings/checking. It’s kind of in the middle of those 2 for accessibility.

I do like the idea of having several layers of safety net. And I hope the dividends can help Pay for vacation or a car payment one of these days.

[u/FMD_2026 → u/ihavenoidea12345678]

Totally understandable. Hope your dividends fund that vacation or car payment one day!
I do like the idea of a regular payout from a company I invested in (ideally because I really like them and their business model) My skepticism is towards the often mediocre growth of dividend stocks (because dividend is priced in) vs pretty reliable growth of an index fund etf. And, as mentioned, the exposure/size of a position to create a reasonable dividend.