Re:Ask HN: I have $450K cash, what should I do to maximize m...
by coliveira on Sunday August 02, 2020 @06:17PM
(#24032259)
Traditional investing focused on dividends for a good reason: you can live on dividends without paying long term capital gains (taxes on dividends are usually lower). At a time when most investors were common folks trying to make a long term investment decision, this was a good thing. Moreover, companies that pay dividends are by definition more mature, which can be a good sign for some investors that want more predictability in their portfolios. The reality is that dividend-based investment has its advantages, which were forgotten by the current generation of investors.
Everything else is the typical movement of any stock, that of course can be detached from reality. The thing is: people are way too focused on the dividend part as if this was the only valid way to investing.