Why I Invest for High Dividend Income Over Growth

If you've been watching my channel for awhile you've probably realized that I stand out among other people on YouTube. While there's plenty of other channels on this site that go over dividend growth stocks, but the number of people who pursue income investing or a mixture of dividend growth and income is pretty small. When I started this channel I didn't expect to receive the amount of viewers or the number of subscribers I've gotten up to this point. But I think two reasons why views on this channel have been so high is because people have been genuinely curious about this style of investing and also, it filled an unfilled niche that wasn't being met that people who invest for income were looking for.

In today's video I wanted to go over why exactly I personally like to invest the way that I do. I love to focus on holdings that prioritize higher yields over growth. I love to target stocks that offer huge dividend yields in exchange for stocks that offer 1 or 2% yields but more share price appreciation. I don’t put all of my money into income stocks, I still hold some higher yielding growth stocks like Realty Income, Main Street Capital and Oak Tree Specialty Lending Corporation. But income is definitely my favorite type of investment in the stock market that I like to focus on.

[NicholasBall]

I started investing in dividends with my taxable account. I used the buy and hold strategy in my Roth, adding some Berkshire B stock, SCHD, and an S&P 500 and total market exchange-traded fund.

[ClementRusso]

Dividends from the stock market encouraged me to begin investing. What matters, in my opinion, is that if you invest and make additional money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can provide that benefit for your children, giving them a head start in life. I've invested more than $600K in dividend stocks throughout the years; I'm currently buying more today and will continue to do so until the price falls even further.

[MIchaelGuzman]

The thing for me is if you're investing and you have other income outside of dividends, you can live on dividends without selling. This means that you can pass on to your children what gives them a step forward in life.

[haywarddisean]

Dividends are what got me into investing in the stock market. The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. Have over $600K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further.

[Raymondjohn]

Rate cuts commence in June 2024, taking 6-8 months to complete. A potential crash, if any, might occur by March 2025. The soft landing narrative is gaining traction, making this big recession everyone is calling for less likely. With $1 million from a business sale, I'm seeking profitable investment opportunities for the next 3 years.

[Amelia-Elizabeth]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[HafezBd]

Dividends prompted me to begin investing in stocks. What counts, in my opinion, is that you can live off of dividends without selling if you invest and make more money in addition to payouts. It indicates that you can pass on your knowledge to your children, giving them a leg up in life. I've invested over $600, 000 in dividend stocks throughout the years, and I'm still buying more today and will do so until the price falls even lower.

[Soupy]

This is exactly why I went into monthly high dividend stocks over buying VTSAX and withdrawing with the 4% rule. It just didn't work for me as I didn't have $1 million dollars to make it work. It's all about monthly cash flow. Once I get to a certain monthly income I can add some growth stocks. Also, at this time, in a bear market I enjoy when stocks are beat up and down as I get to buy more shares at a lower price and increase my monthly income. It makes investing fun and I feel super secure, unlike last year when I was only index and options investing. I can't stomach investing that way. Reinvesting my dividends each month is like giving myself a $100 monthly raise every 3 months. In a year it will be every 2 months and the year after that every month. Rinse and repeat. Currently, I will get all my original invest money back in 5.5 years and after that it's free income for life.

[stephaniestella]

I agree the stock market is a very good way to make passive income. I have heard of several investors who were making more than $40k a month from the market. I'm ready to go into the market now, but I'm careful to not make a mistake. Or are there are safe bets?

[maryfreeman]

Your comments were spot on. Dividends being deposited keeps me motivated.

[nikkimontgomery]

THE RULES OF INVESTING:
1/ Cash FLOW is king
2/ Always diversify
3/ RED is your favorite color (sales)
4/ Unshakeable Commitment
5/ Read everything, believe 20%
6/ Live below your means
7/ Master counter cycle investing
Good luck!😁

[Aziz__]

Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...

[CoffeeMan-YT]

I just hit my 1 year mark of investing and have surprising invested ~10k which is more than I expected for my first year! I’m doing a mixture of growth stocks, Div growth, high yield divs, ETFs, etc… to eventually reach financial freedom! I’m only 21 and I ALWAYS reinvest dividends and it’s my favorite thing To see my Div reinvestments compound, so hopefully at this rate I’ll be able to retire in my 40’s! I always enjoy the awesome info you give out!

[ThUnfilteredGamer_]

Although im younger.... in my 20s I just prefer dividends over growth. I just enjoy seeing the monthly dividends

[erickfelix]

No lie.
This channel single handedly get in stone in giving me the opportunity to retire by the time I reach 40.
3 months in with a port at 9.5k with monthly divs of currently 70 to 80 a month.
Thanks for making this channel!

[cashflow]

Ive been living off my dividends since I fully retired at 58 yrs. I have never sold any stocks because my dividends were never suspended, even through the Covid. I never sell the chickens (principal) that lays the eggs, dividends

[hulenbryant]

Your reasoning is EXACTLY why Dave Ramsey is able to defend his "debt snowball" from smallest to largest debts rather than from the highest to lowest interest rates (which mathematically would be the correct way to pay down your debts). The idea is based on immediately seeing progress. If that's that keeps you motivated to continue investing more power to you. I am in a time horizon, which makes more sense to concentrate on INCOME rather than long term growth. So that is a double incentive for me to do this as well.

[GoDraGo]

Some investors go for growth, others for dividends...you're doing a good job explaining pros and cons! Keep it up!

[bernatkarem]

<< >>Inflation is killing my budget and my salary. I can't invest anymore and it seems like I will need to sell all of my risk assets to keep my head above the water this year.<<>>

[albacusBC]

I saw in a video that though dividend-paying stocks don’t offer dramatic price appreciation, they can provide a consistent income stream, I want to spread across $400k into profit yielding dividend equities but unsure of which to get into.