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Stay Wealthy Retirement Podcast

Why I Don't Buy Dividend Stocks

Stay Wealthy Retirement Podcast

Taylor Schulte, CFP®

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

2.4606 Ratings

🗓️ 14 July 2020

⏱️ 16 minutes

🧾️ Download transcript

Summary

In today’s episode, Jeremy Schneider explains what dividend stocks are and why he believes that chasing dividends will actually make you less wealthy in the long run.‎

He recounts an example told by Warren Buffett explaining why Berkshire Hathaway has never paid a dividend.‎

Jeremy also answers a user question about a better way to invest than the S&P 500 when saving for retirement.

Transcript

Click on a timestamp to play from that location

0:00.0

As Jack Bogle said, you don't want to look for the needle in the haystack, you just buy the haystack.

0:04.6

That's kind of the concept behind an index fund.

0:07.3

And then you own all the dividend and non-dividend producing stocks.

0:13.8

Welcome to the Stay Wealthy podcast with Taylor Schulte.

0:17.0

Once again, this is not Taylor Schulte.

0:18.8

My name is Jeremy Schneider filling in for Taylor for the month of July.

0:22.2

This is my second of five episodes I'll be doing during July, and Taylor will be back on the mic in August.

0:28.7

If you want to find notes for the show, you can find them today at you staywealthy.com slash 76.

0:34.9

Today I want to start with a bit of a trivia question.

0:39.4

I'm going to name 10 stocks.

0:43.5

I want you to think about these stocks and try to figure out if you can tell them what they have in common.

0:44.4

They might have a few things in common because you can probably find some similarities

0:47.6

with any 10 large publicly traded stocks, but these 10 have something pretty specific

0:52.7

in common.

0:54.1

These companies are, in alphabetical have something pretty specific in common. These companies are,

0:55.5

in alphabetical order, Amazon, Berkshire Hathaway, CarMax, Chipotle, Facebook, Google,

1:04.1

Netflix, Salesforce, Under Armour, and United Airlines. Do you know what those 10 companies have in common? And they're

1:12.9

not the only 10 companies, but they are 10 very big successful companies that have this in common.

1:19.2

If you read the title of today's show or if you looked at the show description already,

1:23.4

you probably know that it has to do with dividends. Those 10 companies have never paid a dividend.

1:28.8

So a little bit of a spoiler alert there in the title,

1:31.0

but those are some big, profitable, successful, fast-growing,

...

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