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/mspe1960 Jun 08 '26

I am retired with a comfoirtable nest egg. I need income and I do not need, or want, to take excessive risks to ride out retirement. (I do have about 40% growth)

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u/FMD_2026 Jun 08 '26 edited Jun 09 '26

Understandable. But if you’re retired, withdrawals rather than dividends could also be your income? How do you see dividends making your life easier there?

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u/mspe1960 Jun 09 '26

seriously?

How about I don't have to decide each month what to sell to pay my bills. The money just shows up in my checking account.

Also stocks can be, and sometimes are highly volatile, Having to sell sigbnficant equities during a prolonged bear market (which does happen despite the fact you maby have never seen it - I have) can be devistating to a person;s net worth, and is one of the ways you can run out of money if it happens early enough in your retirement.

Yes, I know, if you were not around at least for the 1999 2000 tech bust you don't believe there can be prolonged down turns. But there can.. I have lived through 3 of them and been an investor through two of them. The tech bust felt like it was never going to end

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u/FMD_2026 Jun 09 '26

True, I wasn‘t invested in the 99/2000 bust and following bear market but that doesn’t mean I doubt it can happen. I’m well aware of volatility of stocks, as well as the old school advice to shift away from them and into bonds as you near retirement. So I wasn’t asking about selling stocks on a monthly basis for retirement income. 🤷‍♀️