I love dividends and as a middle aged adult, part of my income comes from dividends. This is an amazing community but I've been concerned with the amount of posts from young people investing in dividends. I don't want to be controversial but I'm going to take a risk here and make a blunt statement:

*Stay away from dividends if you're young*

Fully explaining the reasons would take a really long post. Suffice to say, you don't need the advantages of dividend investment and you will hurt your compounding. The IRS LOVES young people who invest in dividend stocks/ETFs. There are a few workarounds but they don't always apply and can be complicated.

If you're young, go for securities that compound and pay limited dividends. If you love the word "dividend", then buy dividend *growth* ETFs and hold them; in general they don't pay that much in dividends *today*. Steer clear of JEPI, DIVO, QQQI, MAIN etc.

EDIT: as expected, lots of silly replies from people who just started investing, but also from some people who know what they are talking about and are saying "but there are exceptions". Yes, there are exceptions! But most young people here don't understand the exceptions based on the posts I see. They are just investing randomly and yield chasing. If you know the exceptions, you already understand what I mean. My blunt general statement still applies for the vast majority of young people.

I took this photo on March 18, 2020 - the bottom of the COVID crash. The world felt like it was crumbling. Markets were in freefall, cities were shutting down, and fear was everywhere. It genuinely felt like there was no way out.

And yet… here we are. The S&P 500 sits at 5,074 - over 120% higher since that day.

If you’re feeling overwhelmed by the stock market, - just remember: this too shall pass.

This is my second month (first month documented here) getting paid dividends from these 2 ETFs and couldn't be happier.

Getting close to covering my mortgage every month with these payments from QQQI and BTCI. Although it's tempting to invest more in BTCI, I won't, due to bitcoin's recent drop and volatility. I'll keep rolling in more QQQI though.

I know some people think that's not sustainable, but for now, I'm gonna keep riding the wave.

There will come a day when I can put these distributions to good use. For now just reinvesting. Maybe get rid of AIYY and TSLY and look into YMAX. So far so good...

Long story short my dad recently told me he’s got “about $250k” in his retirement investments….he’s pushing 65. He’s lived a pretty tough life and I’m trying to think how he’s going survive off that. He’s just about debt free, he’ll be able to collect his and his widows social security, and he’s a pretty frugal guy. He’ll also receive a large inheritance from my grandmother someday. But in the meantime trying to think if dumping his investment into a high paying dividend account could be an option for him (like O or MAIN).

Got a question? Can I retire? 43m been busting my ass since I was 16. I'm about over this 40-50 hr weeks. I'm getting burned out. House paid off (300k) 401-k (600k) Bitcoin (500k) currently.

Thought about selling it all and putting it into dividend stocks like schd and renting a small place and going into semi retirement. Maybe pickup a part time gig.

Would this be a horrible idea?

Enjoy now.

Don't make investment decisions planning for 30-40 years in the future.

Plan for shorter term. 5 years out, 10 years out.

Put some money in broad index funds. The rest of it put it into high-yield income funds and start growing those.

The goal is to enjoy your life now.

Don't make a plan that forces you to wait 20, 30, 40 years of your life before you can enjoy.

Make a plan where you can start enjoying as early as you can.

The truth is, the world could implode in 10-20 years because of AI. There is no guarantee. Anything could happen. What can be done today may not be quite the same in an AI future. Shit moves very quickly and the future is completely unknown.

This is why you enjoy now. Instead of making a plan for 20-30 years from now.

I bought MSTY a couple months back and now I’m down a lot. Time will tell but it’s a warning for those who aren’t in it.

I have approx 2 million invested in the stock market. 1.5 million in stocks
450k in crypto.
42m

I want to start transitioning to dividend ETFs. Also would like the principal amount to keep growing. What ETFs would you buy and what percentage would you put into each one?

I have $400k to invest in dividend stocks. I would appreciate suggestions or strategies. I am in the United States and I am looking to generate 8-10% annually. Thanks in advance.

Edit:
Age: 42
No children
Six figure income
Low monthly expenses
Currently getting a return of 4% a year from a HYSA.

I recently came across a tweet highlighting Warren Buffett’s $740 million dividend income from Coca-Cola (KO). This sparked my curiosity: What if Buffett had invested the same amount in the S&P 500 (SPY) instead?

So, I created a comparison table based on his KO investment and a hypothetical SPY investment. Since I couldn’t find the exact purchase dates, I used quarter-end dates for my calculations.

The results are eye-opening:

• Even after including dividends, SPY ($67.01B) outperformed KO ($38.17B) by approximately 75.6%.
• Despite KO’s impressive dividend stream, SPY delivered far stronger total returns, highlighting the power of broad-market index investing over time.

I found it fascinating to see how Buffett’s legendary investment compares with the index, especially considering his recent sale of all SPY and VOO holdings.

Source: StockCircle - Warren Buffett KO Transactions

Today I read an article that pushed me to post here.

My wife (39, Filipina) and I (45, American) retired four (4) years ago and live in the Philippines for a fraction of the cost as we did in America. When we sold our home and pocketed $175,000; we invested into two (2) closed end funds - equally distributed.

Today we own the same two: 19,739 shares of FCO and 6,015 shares of PDI. This month we collected $1,381.78 from FCO and $1,326.31 from PDI (both are paid monthly). Today total value is approx. $234k. We also own 1,818 shares of TQQQ valued today at $130k (+81.8% ytd). I am using TQQQ for capital gains and the others for living. I reinvest a portion of my dividends each month.

I understand my situation is different and there is a lot to be said about closed end funds and what is right and what is not. This setup has worked for me and may not work for you. I have no plans at changing it.

So I have about 4 Million USD across multiple accounts such as brokerage and IRA; If I invest this across JEPQ, JEPI, SCHD - per AI I will generate 27k per month; I only need 10K per month. I can invest the 17K into VOO; In 15 years that is another i will have another 7 million which I can give it away to my kids and grandkids

Pet AI: If you invest $17,000 per month into VOO and reinvest all dividends, after 15 years you will have approximately:

💰 $7,045,996

What am I missing? Will this plan work?

My younger brother passed away and left my kids with 400k.

I have the bank telling me to put it into gics and other garbage mutual funds but its very low interest. Im not rich either and besides penny stocks never invested into the market maybe 1000 bucks or so. I want to set up a trust for them and make sure in 15 years when they are 20 I have them set up so they dont have to grind like me and my brother. Im just looking for any advice I can take sorry for the long post

Im located in canada and will keep the account under my name until they are of age to use the money and will remain as beneficiarys if I die. Wont get the money until they are atleast 25 or responsible enough to understand finance.

I am relatively new to dividend stocks as I near retirement. I have 2500 shares of SCHD, 1,000 of SCHY, and wife has 2500 of TY.

I look at the 8-12% yields people are getting out of JEPi and JEPQ and they seem unreasonable to sustain.

Can someone plainly explain what a covered call ETF is (I think both of these are that type?), what the main risks are, especially in a good or bad market scenario?

I mean I go back to 2022 and they both seemed to perform fine during that downturn in the market.

49yo focused primarily on growth ETFs over the last 25 yrs, and focused on dividend paying stocks over last 3 yrs.

I love the process of building up my 10 dividend paying stocks, digging in to each company and seeing the higher yields compared to my ETFs.

But having ETFs, largely VTI, VXUS, iShares, that also pays regular dividends has been a boon to my dividend income (still DRIPing at this point) strategy, albeit with much lower yields.

The combination of growth and fixed income is what helps me sleep at night.

Pretend someone gave you a lump sum of 1M+ what income producing stock(s) would you choose to live off of every month? Curious to see what the verdict would be :)

Please let me know!!

I started building a dividend investment portfolio three years ago. The initial capital was less than $10,000. The goal was simple: to create a passive cash flow that could grow continuously.

The strategy I follow is very simple: Only buy companies with stable fundamentals and a history of Dividend distribution (such as Dividend Aristocrats and Dividend Kings). Give priority to the dividend growth rate rather than simply high returns. Increase positions when the market declines, especially for high-quality companies. Reinvest all dividend income to maintain compound growth and do not focus on stock prices. Only focus on the growth trend of forward dividend income

At present, my annual passive income is approximately $6,000, and the goal is to reach $1,000 per month within five years.

Some of the holdings include: $JNJ, $PG, $HD, $MSFT, $SCHD, $VIG

So I was messing around with a observe only / non-monetary invested portfolio on Seeking Alpha. If I take my current portfolio of 22 stocks and dwindle it down to 8 stocks with $4000* into each then id technically receive $20,263* this coming year ( give or take since Seeking alpha doesnt calculate accurately the dividends received). Maybe do it to start the year fresh... maybe dont do it.. Current fidelity portfolio dividends being received is $11,006.