Hey Jeremy wanted to let you know how much I love this community you created, as well as your Instagram posts. I know you preach the index fund investing for wealth. But how does that compare to investing into dividend paying stocks, and building that up to cover living expenses. Appreciate any input from anybody as well.
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Hey @Juan_Rodriguez!
Thank you! I don’t chase dividends. A few brief reasons why:
- Dividends are already built into the price of the stock
- Many great growth companies don’t provide dividends (Amazon, Google, Netflix, Berkshire, Chipotle, etc, etc)
- Owning just dividend stocks is likely to increase your volatility but not your expected return
- Index funds already own all the dividend paying stocks (plus all the great growth stocks as well) and pay out those dividends to you!
I just did a whole podcast episode on dividend stocks here:
And here’s an instagram post on it:
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Hi Jeremy,
Thank you so much for taking the time to answer my question!
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