This is Why You Should Invest for High Dividends OVER Growth

In today’s video I want to show people why I’m such a huge fan of both dividend and income investing, but I wanna more specifically focus on income investing. It’s a style of investing that’s typically pursued by retirees looking to maximize their retirement saves. People who aren’t at retirement age are almost always advised to avoid stocks and funds that offer higher yields. They’ll tell you that share price growth should always be your top priority, and then once you’ve retired you can then switch some of your stock holdings into higher yielding investments. But I wanna show you why you might actually wanna pursue higher yielding investments even if you’re not retired, and even, investing in these holdings in a non-retirement account.
 
It’s an idea that I know makes some people cringe. But as I always say, ultimately the style of investing that you pursue should be the one that’s most comfortable to you and motivates you to save and invest the most. If you’re exclusively an index fund investor, or maybe you’re more of a growth investor, then there’s nothing wrong with that. For me personally, after trying several types of investing I found that prioritizing dividends is what I found the most motivating to me. I love to build up large positions in stocks and funds that consistently pay me high amount of income every quarter or every month. For me it’s all about investing for cash flow and it’s what I love and what motivates me the most.

But there’s really two kinds of dividend investing that I wanna define. One is dividend growth investing, which focuses on stocks and ETFs that offer investors yields typically between 1 and 3% that consistently grow in share price and dividend distributions. When people say they’re dividend investors this is the style that most people are referring to. Income investing on the other hand is when people pursue holdings that offer much higher yields, which can be anywhere from 6% all the way up to 15%, that often times don’t offer much growth if any in terms of their share price or dividends. I hold both types of dividend investments, and I do also hold a lot of income investments which is this focus of this video.
 
I’m gonna show you the power of income investing by using a dividend calculator and you’ll see what makes higher yielding investments so great.

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