A guide to FIRE: Financial Independence, Retire Early 🏖️

[Cameron]

@Eden

That’s not to say dividend stocks aren’t worse, just depends on your goals.

This is the thing, they aren’t better or worse - they are just a company policy that shouldn’t really impact your investing decision:

Dividend Irrelevance

I see a lot of focus on dividends among new investors on Freetrade. While dividends are great I wanted to make a thread covering why it makes no sense to focus on dividends when making investment decisions (unless the company’s dividend policy is negatively impacting growth/unsustainable). Hopefully this can be helpful point of reference. This is referred to as Dividend Irrelevance There is a Freetrade thread on a video by Ben Felix that very neatly explains this, if you don’t want to read a l…

If you love Alphabet (for example) but you want a stable income, don’t ignore them because their policy doesn’t align with your goals. Just sell 3% of your shares each year - boom same outcome.

If you love AT&T (for example) but you don’t want income you want growth you can just reinvest their dividends.

Focus on the total return (which long term is driven by future earnings), that’s ultimately what matters.