Why I Still Defend Dividends As The Key to Actual Investing Success

"Dividends are a great way to create passive income, and it's possible to achieve both growth and dividend returns from a single stock."

"The disdain for dividends is excessive, as dividend stocks represent the highest standard in long-term investing."

"95% of posts in r/dividend feature complaints about the long-term viability of a strategy focusing heavily on dividends."

"A portfolio can be built around dividends that can provide tens of thousands of dollars a year."

Dividends serve as rewards for shareholders, creating passive income and gaining popularity despite skepticism. Many investors believe growth stocks yield higher returns, overlooking the potential of dividends. A Reddit user argues that the negative perception of dividends is exaggerated and advocates for their role in long-term investing. They highlight that a significant portion of discussions in dividend-related forums reflect doubts about dividend strategies. Yet, constructing a portfolio emphasizing dividends can result in substantial income, challenging the notion that dividends should be dismissed in favor of growth-oriented investments.

Read at 24/7 Wall St.