Over the last few months I’ve noticed there’s been some people on YouTube talking about this theory that dividend investing is an inefficient strategy when it comes to picking stocks and ETFs. Some of these people have been calling dividends pointless and even stupid and that companies should not be paying their investors. So today I wanna address some of these criticisms and go over a few reasons why dividend investing isn’t dumb, or inefficient and why it’s a perfectly reasonable way of building wealth that anyone can pursue.
I also wanna make it clear that I don’t oppose other forms of investing. If dividends aren’t your thing then that’s up to you and I’m not gonna attack you for that. If you’re exclusively an index fund investor then that’s completely fine. I myself am also an index fund investor, but I primarily like dividend investments. If you invest in value stocks then there’s not wrong with that. But seeing some people specifically calling out dividend investing as being stupid or inefficient I think is completely unjustified. So I’m gonna present seven reasons why dividend investing is a good investing strategy and it actually makes sense for people who are interested.
