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Stay Wealthy Retirement Podcast

Dividend Investing (Part 1): Making Money While You Sleep

Stay Wealthy Retirement Podcast

Taylor Schulte, CFP®

Financialplanning, Retirement, Money, Taxplanning, Stocks, Wealth, Business, Investing, Retirementplanning

2.4606 Ratings

🗓️ 9 May 2024

⏱️ 19 minutes

🧾️ Download transcript

Summary

Today I'm kicking off a multi-part series on Dividend Investing.

While dividends are a normal occurrence in the global markets, their role in a retirement portfolio is often misunderstood.

➤ What is a dividend, and why do some companies pay them? 

➤ How do they affect an investor's return?

➤ Where do dividends fit in the portfolio construction process? 

➤ What are the little-known problems with this investment strategy?

➤ And what does my upcoming birthday have to do with dividends? 🥳

I'm covering all of these questions (and more!) in this investing series. 

***

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***

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Transcript

Click on a timestamp to play from that location

0:00.0

This show is a proud member of the Retirement Podcast Network.

0:07.0

Dividend investing helps your mental health by not caring as much about market volatility

0:11.8

because you're getting reliable and rising cash payouts every three months.

0:16.9

Dividend investing is a no-fail strategy that makes investing easy and allows you to earn income while you sleep, golf, relax, and travel.

0:25.9

Dividend investing can make you money while you sleep.

0:29.9

These are just a few of the countless claims from well-followed people arguing that dividends are the solution to our investing problems.

0:37.4

And it's not just limited to

0:39.0

financial influencers on social media. The last quote was the actual title of an article

0:44.3

published by CNBC earlier this year. The misleading claims are getting louder, more extreme,

0:49.9

and reaching more people than ever before. I get it, yield and predictable income and making money

0:55.5

while I sleep is appealing. Much more appealing than spending from my diversified portfolio of

1:01.1

stocks and bonds. While dividends are a normal and natural part of the investing process, their

1:07.0

role in a retirement portfolio is often misunderstood. In fact, one academic study concludes that

1:13.3

reducing exposure to dividend stocks can actually boost your long-term returns. Welcome to the

1:19.9

Staywaldi podcast. I'm your host Taylor Schulte, and today I'm very excited to kick off a multi-part

1:24.9

series on dividend investing. Once and for all, you will have a clear understanding of how dividends work, the role they play

1:31.9

in the investing world, why some companies issue them and some don't, the pros and cons of

1:37.2

this investment approach, and an underrated alternative to companies paying a dividend.

1:42.5

To grab the links and resources from today's episode,

1:44.8

just head over to you staywealthy.com forward slash 217. When a company is profitable,

1:54.7

it can choose to invest those profits back into the business to fuel future growth or it can

2:00.6

pay eligible shareholders a cash

...

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