Income is wealth preservation, growth is wealth generation. Dividends for retirement or when youâre comfortable, growth stocks for when you want to grow your wealth.
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Surely you can still grow wealth by reinvesting dividends?
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A good growth stock will outperform a good dividend stock even if you reinvest the dividends. I think that is the point being made. Both will do well, but growth will do better.
Dividend investing is the best way to replace your income if you are planning FIRE and want to chart the increase in monthly income as you head towards your goal.
If you want to reach your goal quicker then Growth stock will increase your net worth quicker allowing you to convert this into income at a later date.
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as long as the growth stocks you choose actually grow, weâve been in a bull market for quite a while and it kind of seems like they all do, but that may not always be the case
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Too true. The skill is to find the âgoodâ growth stock
I believe dividend investing begins to make sense from ÂŁ100K portfolio upwards. Otherwise, reinvesting a 0.68pence dividend is a slooooooow way to grow.
Dividend investing also seems to make sense if you are able to invest ÂŁ2-ÂŁ3K (or more) per month as you will clearly get to the ÂŁ100K much faster.
Thatâs why people see a lot of youtubers going that route, due to funnelling the ad revenue and Patreon revenue into their dividend investments.
For the most part, a young investor with ~ÂŁ200 pm to invest over 20+ years, could potentially grow their wealth by taking a more aggressive growth strategy.
Is this roughly correct?
ÂŁ1,000 into Apple 2002 = ÂŁ135,000
ÂŁ1,000 into GSK 2002 = ÂŁ2,500
DYOR and absolutely none of this is advice in any way shape or form whatsoever at all.
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Often the best dividend paying stocks are large established companies that generate loads of cash, so it becomes more of a choice between large already profitable cash making machine, or smaller company with future potential
The smaller company might have better growth prospects and possibly a better return if all goes well, but often it comes with a higher risk as well.
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Choosing the next Apple is the hard part, it was by no means clear in 2002 that that was going to happen
There is some survivorship bias here, how many âgrowthâ stocks have disappeared since 2002?
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By all means go for a dividend growth strategy. There isnât really a wrong or right way to invest so do what you think is going to be best for you.
The strategy probably wonât lead to the highest total return but youâll hold quality companies with prudent financials. As long as they can remain relevant for the length of your holding period then you should do alright
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Disproves what? Iâm not quite sure I understand what you mean.
If your argument is that AT&T is a dividend stock and it has performed badly that doesnât mean there is a causal link. There are loads of other dividend payers that have done well.
If you think that is my hypothesis I think youâve misread my post. I donât suggest itâs impossible to make a positive return from dividend paying stocks. I also am not suggesting all dividend paying stocks always underperform non-dividend paying stocks.
My post is purely that it doesnât make sense to have a preference for them either way (beyond tax reasons)
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Carlson aggressively funds his portfolio alot each month so is going to see a good amount dividends in return and the market has gone up a lot since March so almost everyone is up.
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Seems like a lot of time & effort for a sure and steady return.
Yeah dude Carlson aggressively funds his portfolio with the money he makes from people watching his channel. (& probably some other income strategies).
The idea is to funnel your side hustle money aggressively into dividend paying companies to get to around ÂŁ100k very quickly, then let it compound and work on something else.
Most peopleâs salaries do not catch up with the amazing amount of money that YouTube and other side hustles can quickly snowball into.
At least by you watching his videos you have made him some more ad revenue to invest 
(P.S. Andrei Jikh does what Carlson is doing but so so much better and so so much faster)
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+1 for Andrei Jikh. Heâs much funnier, doesnât assume he knows best and is fully transparent. I watch his videos more for the entertainment than actual advice though.
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There is, thereâs YouTube. Know what youâre doing and with a little luck after the first year you could be hustling ÂŁ3k-ÂŁ5k per month. That can then snowball very quickly into ÂŁ10k-ÂŁ20k per month. The opportunities of today are available (if you have value to provide).
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Well then Andrei Jikhâs 8000 Patreon subs are doing well for him.
(And YouTube pays incredible ad revenue for their audiences, in fact, finance channels earn the most ad revenue out of any other YouTube channel).
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You are incorrect. Once you have 1000+ subscribers and 4000+ viewing hours on your YouTube channel, you can monetise it. By allowing ads on your videos you earn a monthly income from YouTube. It can become a healthy income very quickly and allow many YouTubers to be fully funded in their life, just uploading new content to keep the traffic flowing.
My 16 year old son has a modest following and brings in a monthly income, for himself. Good use of his lockdown time.
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Why do you have to be such a d*** in every post in this thread? 
Calm it a bit down, we all just want to have a nice discussion on stock matters. Youâre not even using any arguments except âfollow this god person because it worksâ. You should at least provide some measure how it works vs. other peopleâs comments.
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I rly like people that dividend invest. Itâs an awesome way to build wealth. Quite tough to build gains on very low balances that is why the dedicated dividend investors build quite large positions in short amounts of time.
In fact, Iâve supported Andrei Jikhâs channel for a couple years. I also support Panda Boss. I like that they dividend invest.
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