What's the point of recieving dividends?The higher the yield, the faster your main investment dilutes. Look at JEPI. High yield, but you are lossing long term, probably doesn't even beat inflation. All payments need to be taxed in order to reinvest. If you are in an accumulation fund, it reinvests automatically and you dont pay taxes, only when you sell. So why not just liquidate 3%yearly/12=0,25% monthly so you get a monthly payment and still grow your investment long term? (not sure how much, but I assume 3% liquidation yearly on the sp500 will still allow some growth). Same shit applies to SCHD, sure less dilution than JEPI, but why the fuck do you need to get the dividend payd if you can just manage it yourself manually and get paid what you will spend instead of get paid too much, and have to reinvest this again in order to not lose it to inflation inmediately thus paying taxes? Inb4 I beat the sp500 long term with muh stock picking, no you don't.
>>58428090I can see the point for retirees that need cashflow, dividend payouts are usually more resilient than the share price. For example, a dividend stock or etf may tank 50% in share price, but this doesn't mean the dividend payout will also tank 50%, in many cases it either stays the same or decreases just a bit.
>>58428100fair enough, but if you are in your 30's 40's and make it from holding something that does a 3x or so and you have enough that you dont want to wagecuck, you still have to take into consideration that you cannot dillute your stack in exchange of higher yield, so my point is, i see all these young investors buying SCHD and getting dividends which they reinvest again which is retarded when you can just buy the sp500The only valid argument i've seen is, "but if you liquidate shares, you are lossing shares, on a long enough timeline you would have 0". But if the sp500 goes up 10% annually long term as expected, then you would in theory never run out of shares, you would liquidate a smaller amount from that 3% yearly as the price goes up. So this seems like a psychological thing, they would rather have dividends paid so they can have the same shares or more if they reinvest, but at the cost of lossing actual purchasing power on your stack. SO whats the fucking point.
>>58428090yield trannies are retarded, what matters is growth and equity unless you're 70 years old
>>58428148Some investors may think tech is very overpriced and due for a major correction. The SPX at this point is a tech etf, so investors may veer towards dividend stocks/etfs because dividend companies also tend to be more boring reliable industries such as oil, healthcare, consumer products etc...so basically orphan stocks. Also take into account that dividend etfs like SCHD also have pretty good capital appreciation, it's not like the share price is a flat line...far from it actually, although the past year was a bit lackluster; however, during covid, SCHD massively outperformed SPX etfs because during an actual societal crisis, reliable and boring companies that also tend to be dividend paying companies will always be needed and desired.
>>58428190but you can find products that have the same type of portfolio as SCHD or similar that is accumulation, im pretty sure there is an ETF or index fund that can meet whatever needs, and have it compound the interest instead of recieving divididends and then have to pay taxes on this dividend to reinvest againstill see no point, unless like you are indeed old enough that you will not see any impact on your capital so it may be worth the dillution vs the short term benefits of getting an higher yield, but then again, if you are old you can also just withdraw higher than this 3-4% and not go bankrupt so whats the point. and you also control when you get paid instead of depending on some quarterly or whatever dividend payment, you liquidate whatever you need. still no point to dividends that I can see so far.
>he doesn't own high yield commodity dividend stocks like FSUGY. Inflation doesn't fade commodity producers.
>>58428700you are down -13% on your investment since 2021
>>58428090nah i'll still eating MAGA TRUMP until elections instead of get stocks and getting fucked
>>58428904No. Anyone who bought the top of the 2021 mania is down 13%. They are probably down more than that with 98% of other stocks. And even if i did buy that top I would be at breakeven because of the dividend.
Correction. Even if you bought the top of the 2021 mania you are still up 15% because of 9% dividend.
>>58429155your cash is melting to inflation, so you have to reinvest it, you buy more shares?and what about the fact that you paid taxes on every dividend payment?
