Time for a change. See my son's 16 year old smelly rabbit at his bed that he refused to throw it away!
Bunny Growth or Bunny Yield???
Read? How to become rich in stocks??? (2)
"Having said that, nothing wrong with using a high yielding strategy. I use it to provide cash flow to pay for my living expenses. But I am under no illusion it will help grow my net-worth... " - SMOL
Excellent comment from SMOL. Clap clap clap!
Yeah. We can't buy food with our multi-baggers! Paper profit is absolutely useless for our hungry stomach.
Read? Current Dividend Yield is good but avoid falling into potential Dividend Traps (4)
"I believe there are many bloggers, cboxers, forum particpants and investing kakis telling you that focusing on stock dividends as passive income is an important key to successful investing. Agree, right?
Perhaps, I am the rare blogger who dare to challenge you to rethink your investing strategy of focusing too much on passive income when you have no real need for it at this stage of your long investing journey and especially when you are not expecting to 'retire' from the workforce soon." - Createwealth8888 aka Uncle8888
Let me ask you this question:
When you have no real need for cash flow to pay for living expenses, why do you want more cash in form of higher stock dividend from high dividend payout ratio from your stocks?
I would expect the frequent answer to be: "More cash to re-invest"
Good answer: To re-invest!!!
Next two questions for you to think over carefully before answering them for yourself.
Who knows you may have a mind flip after that.
First question:
Is 10% yield on 90% dividend payout ratio = 5% yield on 45% dividend payout ratio?
Second question:
Is retained earning = Re-investing?
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