Quote:
Originally Posted by maxjohan
Yup. Dividends are like shiny objects. Seems very nice (as you get an income) but growth stocks can be beasts that return much higher TOTAL GAINS than mature companies that pay large dividends.
Most companies eventually mature and start paying out large dividends.
I recommend reading this about dividends, especially if you are new to stock investing:
https://www.optimizedportfolio.com/dividends/ |
My real point behind the Dividends is this.
Despite the bravado here on this board the majority of the people here do not have the money to really invest a ton. Im talking 10k 20K or 100K. those are the amounts that make a difference.
If you buy 3 shares of American Airlines today then in a year or less maybe you will double your money. Even in 10 to 15 years unless one of the airlines makes a change to revolutionize travel they wont go much beyond that.
But if you put in 100K then its a lot. Most don't have it.
So buying into something that pays dividends then drips or reinvests it builds over time even though the share price does not double or triple.