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Dividend Investing

Hello fellow sales savages! Are any of you into Dividend Growth Investing? It is a rabbit hole I have dived headfirst into lately learning more about the stock market, personal finance, and options trading. Would love to hear your thoughts around it!

πŸ€‘ Side Hustle
πŸ’Έ Investing
🀘 Personal Growth
3
Chep
WR Officer
+10
Business Development Team Lead
Was thinking about this since I was in high school yet never dived in because it takes so much capital to see significant dividend payouts. That being said, acorns grow into mighty oaks so play the long game. I love the idea and if you invest correctly at some point you can live off of the dividends
duckduckgos
Opinionated
+5
Business Development
They say the 8th wonder of the world is compound interest so I agree with you that acorns do truly grow into mighty oaks!
Ryscott0317
Politicker
+7
Territory Manager
There’s a bunch of great YouTube videos if you search β€œdividend stocks” and they show you what’s in their portfolio.

I definitely went down a rabbit hole too and invest with Robinhood. It’s a great strategy.Β 
breezyboiii
Politicker
+5
Sales Boiii
Any particular videos youd recommend?
Ryscott0317
Politicker
+7
Territory Manager
Some of my favorite channels are:
Andrei JikhThe dream green show
Let’s talk money! With Joseph Hogue
braintank
Politicker
+6
Enterprise Account Executive
Preface with I am not a financial advisor...

Depends on your age, income, and goals. If you're younger and have a longer-term horizon for investments, you're likely to get better returns investing in growth stocks vs dividend stocks. Take a look at a 5-year chart for VUG vs VYM vs VTI.Β 

Also, depending on the investment type and how long you hold it dividends may be taxed as ordinary income. If you're raking in $500K+ every year (which all savages should be) then you're going to pay a hefty price to Uncle Sam. Compare that with parking money in a low-cost growth ETF and letting it sit for a year and paying long-term cap gains.Β 
duckduckgos
Opinionated
+5
Business Development
Thanks for this braintank! I've been looking up qualified vs ordinary dividends and have been learning the differences in how they are taxed. Dividends from REIT's are taxed as ordinary income which is no bueno if you are receiving those dividends in a taxable (non retirement account).Β 

However, qualified dividends are the most common and you can earn up to 44k per filer in dividend income and pay no taxes. In theory you could file jointly with your spouse and pay 0% taxes on up to 88k of passive dividend income which was shocking to me.Β 
braintank
Politicker
+6
Enterprise Account Executive
Are you looking for cash or growth?
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1nbatopshotfan
Politicker
+6
Senior Director, Enterprise Technology
Only the dividend paying funds in my index funds. Reinvested right automatically. Not sexy but consistent.Β 
WendysBiggieBag
Fire Starter
+3
Account Executive
I was into it for a bit until I realized those dividends get taxed as ordinary income because it's on top of the salary you already get from your 9 to 5.Β 

So I switched my strategy up a bit to tech stocks (think FAANGM, etc.) and VTI for the growth (which doesn't get taxed as long as you don't sell) and eventually when I retire switch all that growth into dividend stocks where then I can live off and not have it be taxed as high or potentially at all since by that time I won't have a salary job.Β 

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