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Now I’ll Convince You Dividend Investing Is Bad

The creator argues against dividend investing, stating that dividends are not free money as the share price drops by the dividend amount on the ex-dividend date. They also contend that focusing on dividends can lead investors to prioritize the arrival of returns (cash) over the total amount of return generated, suggesting that a homemade dividend by selling stock can achieve the same result more efficiently. The creator emphasizes that a dollar of wealth is a dollar of wealth, regardless of its source (dividend, price appreciation, buyback).

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ONeutralLow ConvictionResearch Only

Realy Income is mentioned as an example of a company dividend investors might personally believe in and own, but the creator implies that broad market indexing is superior.

PGNeutralLow ConvictionResearch Only

Proctor and Gamble is mentioned as an example of a company dividend investors might personally believe in and own, but the creator implies that broad market indexing is superior.

KONeutralLow ConvictionResearch Only

Coca-Cola is mentioned as an example of a company that dividend investors might personally believe in and own, but the creator implies that broad market indexing is superior.

SPXXNeutralLow ConvictionResearch Only

The creator suggests that most people should invest in a broad market index fund like the S&P 500, as even professionals struggle to consistently beat it.

AMZNNeutralMedium ConvictionSignal-backedPrimary

The creator regrets not buying Amazon historically due to its lack of dividends, recognizing it as a massive wealth generator that was missed by their dividend-focused strategy.

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