A Solid Path To Dividend Investing For Young People

High returns now…high dividends later

I’ve always been intrigued by dividend investing and cover this investing strategy on my Beat The Market YouTube channel. The idea of buying a stock and getting paid to hold onto that stock is as passive as passive income gets.

If you run social media ads and make your income that way, most of the work is passive, but you still have to actively manage the ads.

Dividend investing is truly a passive income source. Just do some research, find stocks that align with your criteria, and start investing.

But dividend investing isn’t for everyone.

When a stock issues a dividend of $1/share, that’s $1/share the company could reinvest but chooses not to. In other words, a company offering a $1/share dividend will lose $1/share in value, thus cancelling out the dividend.

Dividend investors who want the income won’t care for this detail. The extra income pays off a few expenses and they don’t have to sell any shares. And sure, dividends aren’t exactly tax friendly, but they do provide extra income that can meaningfully pay expenses over time.

Assuming you pick the right stocks or funds, the dividend will grow each year.