Why Dividends Are Better Than Just Selling Shares

In this video I tell why getting dividends are better than just selling shares to get cash.

0:00 Intro
0:23 Common complaints against dividends
0:58 Some counter points
1:08 Dividend stocks outperforming non-dividend stocks, on average, over the long term
1:11 Why do they tend to outperform?
1:41 Reason #1 (why Dividends are Better than Selling Shares) – they are true passive income
2:18 Reason #2 Market crashes don’t impact your cash flow
2:53 Article about UBI
3:12 How large of a dividend portfolio is needed to generate $500/mo
3:40 How are dividends paid out?
3:52 What happens on the ex-date
5:01 Reason #3: Yield Shield
5:26 Formula for Dividend Yield
6:08 XOM example of fluctuating yield
6:53 AAPL example of buying when others are selling
7:49 Reason #4: No expertise is needed to get dividend cash flow (once your portfolio is established)
8:00 Reason #5: Easier to create generational wealth & ongoing cash flow (even if you aren’t around)
8:26 Reason #6: Dividend cash flow is less stressful than selling shares for cash flow
8:40 Reason #7 & #8: Dividends can enable you to retire early confidently, as well as allow your beneficiaries to get similar benefits more easily
9:17 Reason #9: My dividend income will basically automatically trend up over time
9:46 Reason #10: The power of the dividend snowball & compounding growth
10:11 MCD snowball/compounding example
11:27 Reason #11: Dividends (& DRIPs) are more motivating
11:35 Reason #12: Crashing markets are motivating as DRIPs buy more
11:51 Reason #13: You feel like your dividend stocks are productive immediately
12:13 Options options
12:30 Reason #14: Dividend investors don’t have to deal with as much seller’s remorse
12:40 Taxes
15:22 Bottom line, both can be good (or not)
15:55 Russ Gremel dividend investing story
18:33 Shoutouts

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Disclaimer: I am not a financial adviser. These videos are for entertainment, inspiration, and educational purposes only. Investing of any kind involves risk. I am only sharing my opinion with no guarantee of gains or losses on investments. Please consult an appropriate adviser and do your own research before making any decisions on anything. I am not responsible or liable for any actions you take. The data shared may be inaccurate.

Copyright © 2023 GenExDividendInvestor. All rights reserved.

#Dividends #DividendGrowthInvesting #PassiveIncome

[GenExDividendInvestor]

In this video I tell why getting dividends are better than just selling shares to get cash.

0:00 Intro
0:23 Common complaints against dividends
0:58 Some counter points
1:08 Dividend stocks outperforming non-dividend stocks, on average, over the long term
1:11 Why do they tend to outperform?
1:41 Reason #1 (why Dividends are Better than Selling Shares) – they are true passive income
2:18 Reason #2 Market crashes don’t impact your cash flow
2:53 Article about UBI
3:12 How large of a dividend portfolio is needed to generate $500/mo
3:40 How are dividends paid out?
3:52 What happens on the ex-date
5:01 Reason #3: Yield Shield
5:26 Formula for Dividend Yield
6:08 XOM example of fluctuating yield
6:53 AAPL example of buying when others are selling
7:49 Reason #4: No expertise is needed to get dividend cash flow (once your portfolio is established)
8:00 Reason #5: Easier to create generational wealth & ongoing cash flow (even if you aren’t around)
8:26 Reason #6: Dividend cash flow is less stressful than selling shares for cash flow
8:40 Reason #7 & #8: Dividends can enable you to retire early confidently, as well as allow your beneficiaries to get similar benefits more easily
9:17 Reason #9: My dividend income will basically automatically trend up over time
9:46 Reason #10: The power of the dividend snowball & compounding growth
10:11 MCD snowball/compounding example
11:27 Reason #11: Dividends (& DRIPs) are more motivating
11:35 Reason #12: Crashing markets are motivating as DRIPs buy more
11:51 Reason #13: You feel like your dividend stocks are productive immediately
12:13 Options options
12:30 Reason #14: Dividend investors don’t have to deal with as much seller’s remorse
12:40 Taxes
15:22 Bottom line, both can be good (or not)
15:55 Russ Gremel dividend investing story
18:33 Shoutouts

To get access to my Spreadsheet 2.0 then please sign up as a Patreon Aristocrat or King (and double check my Patreon site to ensure I’m still offering access, as I only have limited seats available). You also get other perks for signing up including the ability to watch my videos on my Discord before I release them to the public, and the ability to vote on what thumbnail I’ll use in some of my future videos, and you gain direct access to me.




Thanks! As an Amazon Associate I earn from qualifying purchases.

Please LIKE, COMMENT and SUBSCRIBE to support this channel - it helps me immensely! Also, please SHARE this video with your friends :) Thanks, I really appreciate it!

[billyjohnson]

Agree 100%. I don’t buy a stock if it doesn’t pay dividends.

[Robdontstop]

I’m glad you are still around passing the word.

Sitting in my jacuzzi on the beach thanks to dividends fyi

[ShamileII]

Great video as always. This video is EXACTLY why I'm a dividend growth investor. If the CEO wants to fly on his lear jet, no long as I get my piece of the action. Financially retired and run my aluminum manufacturing company for the enjoyment.

[cashflow]

Again, another great video. My dividends are supplementing my retirement at the moment. I have no debt and will be collecting my maximum SS in 2 years. Im praying that you will continue your journey to being well. Your content and personal journey is truly amazing.

[dividendjourney]

Dividends will always be better than selling shares in my opinion! Never lose you’re principal! Only reinvest and add more dividends in early years, then when retiring just live off the divvys or less and continue to see rate hikes, and divvy growth long-term! Great video! Also, loved the info on grandpa too!:) Very humble and nice 👍

[unorthodocs]

Retired at 55. Using equal parts JEPI, JEPQ, XYLD, and RYLD in one account. Other account of equal value has VOO equivalent. Dividends pay for all expenses with some money left over to reinvest. Once I get SS I hope to shift over to higher growth funds like SCHD that also have better tax treatment.

[slmunney]

Good video. The only thing that a retail investor is buying when he or she purchases any publicly traded equity security (individual stock, mutual fund, ETF, etc.) is the right to receive future dividends. An equity security does not entitle you to the company's earnings (unless paid out in the form of a dividend) or any share of the company's properties or assets. William Bernstein (Four Pillars of Investing): if anyone tells you that dividends don't matter, turn around and run (paraphrasing). Mr. Money Mustache: if not for dividends, we might as well be trading baseball cards (paraphrasing again).

[stickpuppyslife]

Fantastic video Gen X. I've retired off of dividends and capital gains before and can attest to the stress and anxiety that comes with trading stocks to make a profit to then be able to live off of. Much better to buy and hold good dividend paying stocks like we have here in Australia.
People just won't understand unless they've actually tried it for a few years.
I'm back at work now and building up my portfolio to what it was before the Covid crash. I had alot of tech stocks and sold at the low. Wish I had come across your channel earlier. I really focus on the forecast annual dividend number now when I look at my portfolio, not the book gain or loss.
And I loved the anecdote at the end with the man who retired in his 40s on Walmart stocks!!! What a great FIRE story.

[pinkpear]

I am just starting out and you by far are the most helpful person I have encountered

[seanshover]

Your logic is inescapable. Thank you for documenting the arguments so well. Cheers!

[Gary]

Great story, you covered a lot of ground here. I'm similar to the old guy as I quit working at 45 in 2000. The tax system almost makes the people that work for a living the "suckers". But I hope No politician changes the div tax code as it gets even better in retirement with about 25K of your SS not getting taxed or included as income, then you can add a ton of qualified divs and hardly pay anything.
You wife and kids should be very grateful to have you doing such a good job looking after their financial future. "Father's Day" better be a big event at your household from now

[DansBlues]

I’m long in Apple and Microsoft. I inherited those and then bought both. I bought Apple after it last split. I have great Capital appreciation in both.

Apple is my second largest holding. Oneok is my highest. I sold T and wanted to replace it with a high yielding stocks. To get as much dividend as T was paying. It was one of the stocks I bought.

Every year my investment income rises. I too hope to leave it to my kids. Just As my Grandparents and parents did for us.

Big Mardi Gras weekend down here and I ride in a parade tomorrow. 📿📿📿 woohoo!!!

[JoshDoesDividends]

Totally agree. I also enjoy selling covered calls on my dividend stocks after doing some technical analysis to see where the stock likely wont go - and then I place my strike price above it to gain some extra weekly / monthly income.

[JustinPratt]

Got in a discussion with someone on another video. Said dividends did not matter. The traditional sell 4% of your portfolio and hope it outlasts you is crazy to me. Dividends I get to protect my capital and have something great to pass to my kids.

[boni]

Investor from the Philippines here, very applicable as well. Been convincing myself not to sell certain stocks but this video makes so much sense! Stay healthy sir thank you.

[toddhallam]

Totally agree with you on collecting dividends for income as opposed to selling securities. Great video.

[jumbothompson]

Good point about too many things that can possibly go wrong. That's why for the most part I like to buy and hold and I try no to pay attention too much about what's going on with the FED or whatever else is going on in the economy. Once you start to try to time when your going to buy or sell that's when things can start to go wrong and mistakes happen. Dividend investing has the advantage that your head is pretty much clear of all the doom/gloom, fomo etc...It keeps things simple.

[lindsayjohnston]

I buy growth etfs that pay dividends that includes Apple and non dividend payers and buy mostly utility stocks which pay higher safe dividends

[kevinmendoza]

Thank you for the new dividend investing video GenEx! I’m buying more dividend stocks this upcoming week. 🚀📈