Are Dividend Investments a Good idea?

About this Video

• Video Title: Are Dividend Investments a Good idea?
• Channel: Daily Driven Porsche
• Speakers: Unknown
• Duration: 00:12:29

Introduction

The video discusses the speaker's dividend growth investing strategy, focusing on increasing income and using the "rule of 72" to project yield doubling. He shares his personal approach to investing in SCHD and balancing it with his business goals, while also offering general advice for young investors.

Key Takeaways

• Dividend Growth Focus: The speaker prioritizes increasing dividend income over principal balance, viewing it as a way to outpace inflation.
• SCHD Investment: The speaker actively invests in SCHD (Schwab U.S. Dividend Equity ETF) and aims to increase his share count regularly.
• "Going to Broke" Strategy: The speaker uses a strategy of transferring excess funds from his business and personal accounts to investment accounts, creating a sense of urgency to generate more income.
• Rule of 72 for Yield: The speaker applies the rule of 72 to his dividend yield to estimate how long it will take for his income to double, rather than applying it to the stock's growth.
• Importance of Continued Investing: The speaker emphasizes the importance of finding an investment strategy that you can stick with consistently, even if it's just dollar-cost averaging into the S&P 500.