Why Do Some People Think Dividend Investing Is Worse Than VTI and Chill?

"Some passive investors have done extraordinarily well by sticking with index funds and not worrying about the individual names that one can pick and choose from. Indeed, portfolio construction isn't for everybody, especially for those who are retiring and seeking to live off their investments. And while it can be as simple as buying and holding an index ETF that mirrors the S&P 500 (or the Nasdaq 100 for younger investors seeking a bit more of a growth jolt),"

"I do think there's also a case for picking individual dividend stocks and even mixing them with income ETFs or, yes, even the incredibly popular Vanguard Total Stock Market Index Fund ETF ( NYSEARCA:VTI), which is even more diversified than the S&P 500, with exposure to America's lesser-known mid-cap names. For a retiree, it's just nice to have a steady cash flow stream trickling real money into your account without requiring you to sell anything."

"Indeed, index investing has boomed in popularity over the past decade, and it's not about to hit a roadblock. At the end of the day, there will always be someone out there who prioritizes minimizing fees, simplicity, and, perhaps most importantly, saving themselves time. Indeed, it does take a lot of time and effort to conduct a valuation of an individual business or manage one's portfolio every quarter, year, or whenever one desires. Perhaps the biggest upside to sticking with the "buy the VTI and chill" method is that it takes emotions right out of the equation, or the desire to maximize one's yield (chasing yield is a risky move). Every paycheck, you buy more VTI, and it doesn't matter what stocks have been doing of late."

Passive investors have achieved strong results by relying on index funds and avoiding individual stock selection. Index ETFs such as those mirroring the S&P 500 or the Nasdaq 100 offer simple, low-cost exposures, and broad options like Vanguard Total Stock Market ETF (VTI) add mid-cap diversification. Retirees can supplement index holdings with individual dividend stocks or income ETFs to generate steady cash flow without selling principal. Index investing reduces fees, emotional trading, and time spent on valuations and portfolio management. Chasing yield introduces risk, while systematic purchases of broad-market ETFs provide discipline and long-term simplicity.

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