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I’ve noticed a lot of people make this mistake they invest in a company just because it offers good dividends, without looking at anything else. But that’s not really a smart approach. The dividends you get are based on how much you invest. So if yo

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Anonymous

Anonymous 1

Hey I am on Medial • 21h

The real issue here isn't dividends themselves but investor psychology. Many retail investors lack the discipline to sell portions of their investments for income, so dividends create a psychological "permission structure" to use investment returns without touching principal. Is this mathematically optimal? No. But for many people, especially retirees, the psychological comfort of receiving regular payments without selling shares has real value that pure mathematics doesn't capture. The best strategy combines some dividend payers with growth stocks, giving you both income and appreciation potential.

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