Essentially, there are only two ways to make money on the stock market:1. Buy low — sell high2. Accumulate dividend kings and dividend aristocratsThe first strategy — buying low and selling high — is impossible for retail investors in the long run because Wall Street has too many competitive advantages, for example high-frequency trading, order flow, etc.Money always flows from market participants with little capital and little knowledge to those with plenty of capital and plenty of knowledge. There may be a few lucky retail investors who get lucky for a while, but most of those on social media They just want to sell you some investment products, and the biggest scam among them is day trading courses (90% of all day traders lose 90% of their capital in the first 90 days).Strategy 2 — accumulating “Dividend Kings” and “Dividend Aristocrats” — is the old money Strategy.Anyone starting from scratch has to begin very early and maintain a high savings rate, but in the long run, it’s the only thing that really works reliably in the stock market.
redpill me on dividendsso they are not free moneybut they are also not forced withdrawals?your share number remains the samebut you receive a cash sum?but then the global valuation of the stock drops by that amount of cash you receive?
>>62822341>redpill me on dividends>so they are not free money>but they are also not forced withdrawals?If a company generates a profit, it can either reinvest the profits in research and development (which is often the case with technology companies) or distribute the profits to shareholders; a combination of the two is also possible.As a shareholder, dividends are automatically credited to your account. European companies pay dividends to their shareholders once a year, while American companies often pay them four times a year. >your share number remains the sameYes.In a Corporate Spin-off, you even receive additional shares from a company.In this process, a parent company separates from a subsidiary or a business unit. Instead of selling this part directly, it is listed on the stock exchange as a separate company. As compensation, the parent company’s shareholders automatically receive new shares of the spun-off subsidiary—usually free of charge—which are credited directly to their brokerage accounts. Corporate Spin-off are rare.>but you receive a cash sum?Aside from the tax implications, dividends are passive income, meaning you receive money in your account on a regular basis without having to do anything.
>>62822631Does the value drop like he asked? It makes sense. I guess I just gotta look at a chart for a dividend company.Drop some tickers on us OP - of some kings
>>62822341>but then the global valuation of the stock drops by that amount of cash you receive?No, supply and demand determine the price of publicly traded companies.There is the Dividend-Stripping / Dividend Capture Strategy. Under this strategy, shares are purchased shortly before the dividend payment date and sold again after the dividends are received. As a result, many stocks rise in price before the dividend payment and fall again after the dividends are paid.But that's not what I mean when I write about accumulating “dividend kings” and “dividend aristocrats”; what I mean is that you continuously buy more of these stocks.Dividend kings are stocks that have paid higher dividends each year than the previous year for more than 50 yearsDividend aristocrats are stocks that have paid higher dividends each year than the previous year for more than 25 yearsOld money continuously buys more of these stocks, and the income increases
>>62822341>>62822210Dividends stunt the growth of your portfolio compared to actual growth stocks. Midwit trap
>>62822662growth stocks is the buy low, sell high strategyAccumulating dividend-paying stocks is another strategy; it’s about generating passive income through dividends that are paid out regularly. with no intention of ever selling these shares; it's all about the dividend income.As a concrete example, consider shares in an airline that reinvests its profits in the purchase of new aircraft and thus grows but does not pay dividends — this can work out well, but it can also backfire; there are many airlines that have gone bankrupt. The dividend strategy is to buy airport stocks that pay dividends regularly, Airports rarely go bankrupt because they have a natural monopoly, and the government is often a major shareholder, which provides legal protection and, in a crisis, a bailout funded by taxpayer money.
>>62822210>The first strategy — buying low and selling high — is impossible for retail investors in the long run because Wall Street has too many competitive advantages, for example high-frequency trading, order flow, etc.How is this impossible for us?I have bought when there was a shit ton of fear many times. Just dont buy shit. If you buy good stuff it eventually goes back up because fiat is gongo down.
>>62822210>>1. Buy low — sell high>>2. Accumulate dividend kings and dividend aristocrats>>The first strategy — buying low and selling high — is impossible for retail investors in the long run because Wall Street has too many competitive advantages, for example high-frequency trading, order flow, etc.All of that works if you're investing for like a yearLike if /biz/ wasn't retarded and fudded AI for a year, if you bought a year ago when it was low and sold high you would be fineThe problems only emerge when a smartass thinks he can trade to make 32,000 a month on 100 random trades.
>>62822210>make money>in the stock marketYou fucking mong, s&p500 barely outpaces m2
>>62822925Excellent use of semicolon though. You can't be American if you are the educated
>>62822210Thought OP image was Mike Maloney for a moment
>>62823114>Over 2x higher>Barely
3. Buy the index and sell long dated covered calls on said indexYou get the benefits of owning growth and getting your "divvys" along the way
>>62823441>he thinks 1.49x is > 2x>he's satisfied with 2x over 33 yearsFound the chain link guy
>>62822210Buying low and selling high is absurdly easy though, so your entire post is mooted.
At least edit the dashes next time you post slop
>>62824998This underperforms buying high and selling low because US stock markets feature momentum effects.
>>62822210buy growth stocks with potential to pay dividends some day. i held google and apple for a loooong ass time before they started paying dividends lmao.
>>62822210If you are STEM educated, you have already entitled $1,000,000 high end paycheck job. Any STEM.
>>62823075Luck you! But your luck won't last forever; sooner or later, you'll lose. And that's the difference between you and those who build passive income with “dividend kings”, the dividends come in regularly, and each year they're higher than the year before.
>>62823104It's a question of reproducibility: How often can you repeat the strategy of buying low and selling high? Can this really work for 50 years? No, only in the rarest of cases. >>6282311457% of the S&P 500 consists of AI companies (including chip manufacturers, data centers, and software companiesIf the AI bubble bursts, it will drag down the S&P 500 and other indices as well.
>>62823390Klaus Kinski a psychopathic actor who has committed heinous crimes>>62823457 That takes a lot of effort and requires more expertise than simply collecting dividends. >>62824998Speculation is not a reliable strategy. Unlike investing in “dividend kings,” which pay more dividends into your account every year >>62825072Lucky you, You've selected the winners. How often can you do that over the long term? >>62825084You're a dreamer.
Ultimate divy portfolio:TXNPGKOITWUNPLMTWMFRTXOMMCOAFLCJNJED
>>62825477I see it more like alchemy. The philosopher's stone. YOu need cashflow from your job. You need 3 good trades to turn 100k into 1 million. From there you act more cautiously since the real fuck point seems to not come from losing 5k on a bad trade and having to work overtime to make up for it, but the people who have a millionish dollars and want to have 10 million on a quick timescale with low IQ plays.>57%If the bubble bursts it'll be 5 years from now when it consists of 70% of AI and robotics companies and people realize they can't afford the work robots they bought as a gimmick on credit.
>>62825084if you adjust for inflation from 2010 to now, stem jobs for google should be paying 1 million but only pay 250k in the bay area because of massive h1b importations. This filters down to all other jobs because 1 million dollar stem guy means truck guy gets paid 400k or accountant gets paid 300k, the entire flow of the system is disrupted by jeets while costs are rising normally/somewhat faster than inflation due to companies wanting to contstantly make more.
>>62825513 Thank you for your contribution. You always have to ask yourself whether the company produces a necessity, something every person must buy to survive, or whether it produces a discretionary item, something you can do without. For example, everyone needs food, and the largest food manufacturers dominate the market with a vast array of different brand names. As a consumer, you get the impression that you have a huge selection of different brands to choose from, but in reality, all of these brands belong to the same 10 largest food manufacturers (see image).As a shareholder in the 10 largest food manufacturers, you have a guaranteed long-term income from dividends, regardless of whether the stock market goes up or down, whether there’s an economic crisis, a pandemic, or even a world war. people will always buy food and Shareholders always receive dividends.
