2.4 • 606 Ratings
🗓️ 9 May 2024
⏱️ 19 minutes
🧾️ Download transcript
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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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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