Dividend Growth vs Income Investing (When/Why Strategy)

In this video, I describe what kind of dividend stocks I prefer right now and then as a follow on quest, i’ll answer what kind of dividend stocks i’ll prefer later on in life. It basically boils down to Dividend Growth Investing vs Dividend Income Investing. And, this is my way of sharing with you my most favorite dividend stocks as of right now (June 2024)! **All the way at the end, I have some exciting channel announcements!

Investing Strategy for Someone Who Is Young

Aggressive Growth:

Asset Allocation: Young investors typically have a higher risk tolerance and a longer time horizon, allowing them to allocate a larger portion of their portfolio to stocks. This could mean 80-90% in stocks and 10-20% in bonds or other fixed-income assets.
Equities Focus: Focus on growth stocks, index funds, and ETFs that have the potential for high returns. Consider small-cap stocks and emerging markets for diversification and growth potential.
Dollar-Cost Averaging: Consistently invest a fixed amount of money at regular intervals, regardless of market conditions. This strategy helps to average out the cost of investments over time.
Reinvestment:

Dividends and Capital Gains: Reinvest any dividends and capital gains to take advantage of compounding growth. Many brokerage accounts and funds offer automatic reinvestment options.
Risk Management:

Diversification: Diversify across different sectors, industries, and geographic regions to spread risk.
Emergency Fund: Maintain an emergency fund with 3-6 months' worth of living expenses to cover unexpected costs without needing to liquidate investments.
Retirement Accounts:

401(k) and IRA: Maximize contributions to tax-advantaged retirement accounts like 401(k)s and IRAs. Take advantage of employer matching contributions if available.
Roth IRA: Consider a Roth IRA for tax-free withdrawals in retirement, especially if you expect to be in a higher tax bracket in the future.
Education and Skill Development:

Continuous Learning: Stay informed about investing, personal finance, and economic trends. This knowledge will help in making informed investment decisions.

Investing Strategy for Someone Who Is Older and in Retirement
Capital Preservation:

Asset Allocation: Shift towards a more conservative asset allocation to protect capital. This could mean 40-60% in stocks and 40-60% in bonds and other fixed-income assets.
Income Focus: Invest in dividend-paying stocks, bonds, and other income-generating assets. This provides a steady income stream to cover living expenses.
Withdrawal Strategy:

Safe Withdrawal Rate: Follow a safe withdrawal rate, such as the 4% rule, to ensure that your savings last throughout retirement.
Required Minimum Distributions (RMDs): After age 72, be aware of RMDs from traditional retirement accounts to avoid penalties.
Risk Management:

Diversification: Continue to diversify investments to reduce risk. This includes maintaining a mix of domestic and international stocks, bonds, and possibly real estate.
Healthcare Costs: Plan for healthcare expenses by considering long-term care insurance or allocating funds specifically for medical costs.
Tax Efficiency:

Tax-Advantaged Accounts: Manage withdrawals from different accounts (taxable, tax-deferred, and tax-free) to minimize tax liability. Withdraw from taxable accounts first, then tax-deferred, and finally tax-free accounts like Roth IRAs.
Tax-Loss Harvesting: Use tax-loss harvesting strategies in taxable accounts to offset capital gains and reduce taxes.
Estate Planning:

Wills and Trusts: Ensure that estate planning documents are up-to-date. This includes wills, trusts, and powers of attorney.
Beneficiaries: Regularly review and update beneficiary designations on retirement accounts and insurance policies.
Annuities and Social Security:

Social Security: Plan the timing of Social Security benefits to maximize lifetime income. Delaying benefits can result in higher monthly payments.
Annuities: Consider annuities for guaranteed lifetime income, but be aware of fees and terms.
By adapting the investment strategy from an aggressive growth focus when young to a more conservative, income-focused approach in retirement, individuals can balance the need for growth with the need for stability and income in their later years.
#DividendInvesting #InvestingForBeginners #DividendGrowthInvesting #StockMarket

[UsernameAmos]

In this video, I describe what kind of dividend stocks I prefer right now and then as a follow on quest, i’ll answer what kind of dividend stocks i’ll prefer later on in life. It basically boils down to Dividend Growth Investing vs Dividend Income Investing. And, this is my way of sharing with you my most favorite dividend stocks as of right now (June 2024)! **All the way at the end, I have some exciting channel announcements!

[will]

Love the ending of this one, keep up the great work.

[dawsonstoneroad]

Another banger! Looking forward to the life story video

[chimchu]

Using your example of visa, would you still sell visa in retirement if your yield on cost was incredibly high, like 10?
To me the advantage of dividend growth stocks is that i wont have to sell them for higher yield, because the yield will be increasing (ideally) the whole time im in the accumulation phase. If i had a poor performer that wasn't increasing the dividend, but i still had capital gains, i could see selling that and converting into a high yield fund then. What is your opinion on yield on cost?

[Millennial-Investor]

Im on a diet, but boy o boy, these cheeseburger pictures look too damn good. its hard looking at these cheeseburgers lol.

[JEEntertainment]

getting on my stupid little soapbox here - and i know it was just thumbnail clickbait stuff - but graham stephen is one of the biggest scam artists in the game. His content is abhorrently surface level, and very doomer/clickbait in general "THE MARKET IS 1N TROUBLE?!?!??!!", but he also promotes literal scams time and time again. He is the epitome of those who can't do will speak in extremes on the internet. No responsibility, no solid advice, just scams that are helped and propped up by his viewers that drool on themselves. Stay away.

[usedcolouringbook]

Since you like nutrition, check out what a low carb diet (aka low residue diet if you're old school) can do for your colon and heart health! I'm slamming bunless double-doubles and my IBD has been the most controllable symptomatically.