Dividend Investing

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3 years ago

I recently came across @scottcbusiness 's latest video post on YouTube that talks about "4 Ways Your Wealth Grows With Dividend Investing."

He said, "Whether you invest in cryptocurrencies that you can stake or stocks that pay you dividends, there are multiple ways that your wealth will appreciate, and your passive income will compound."

Here is the link to the video:

According to him, the four ways you can grow your wealth, whether you're investing in cryptocurrency or stocks are:

  1. The first way that you can earn or rather grow your wealth is with your equity growth meaning that your stock goes up in value your cryptocurrency goes up in value that is appreciation and you are making money by doing this.

  2. The second way that your wealth is going to grow is that you're going to receive more cryptocurrency from staking lending doing all those things and you're going to get regular dividend payouts from your stocks so in that way you're going to earn uh extra cryptocurrency or fiat cash that you could then reinvest into your stock.

  3. The third way that you're going to grow your wealth which is compounding reinvestment when you're getting dividend payouts and crypto payouts and you're automatically putting that back in you're then using the new balance to get the next payout which is going to be more and more and more.

  4. The last way that you can earn money through your dividend payouts is dividend growth so your apy on how much you're actually making from those dividends might go up.

Here is what I can say:

Dividend investing is truly one of the various ways in which we can grow our wealth. Though it takes time and of course patience.

Based on what I have watched and read on various sites, dividend investing is investing in stocks for big cash dividends, so that is a consistent return on the investment in the form of a cash. In fact, getting dividends is similar to accumulating interest in money deposited in a bank account. In stock markets, prognosticating the growth and decline of share prices is very much tricky and in various ways, dividend stocks allow a secure method of making returns. As a supplement to that, dividend stocks also have numerous other benefits over non-dividend stocks.

Dividend decision is considered as an integral part of investment decision making to maximize shareholders wealth as suggested by a number of scholars such as Bainbridge (1993), Jensen (2001); Brigham and Ehrhardt (2002); Brealey and Meyer (2003).

Just like what he said, "The summary is that, based on your income, your dividends can be charged or taxed at a more economical rate than your capital gains. This is especially beneficial for when you retire and desire to live off your dividends and pay no taxes."

Other notes stated by @scottcbusiness:

  • Price Appreciation

  • Dividend Income

  • Compounding Interest

  • Dividend Growth

Again, Here is the link to the video:


Translation of the four ways you can grow your wealth to Filipino:

Ayon sa kanya, ang apat na paraan upang mapalago mo ang iyong yaman, kung namumuhunan ka sa cryptocurrency o stock ay:

  1. Ang unang paraan na maaari kang kumita o higit na mapalago ang iyong kayamanan ay ang iyong paglaki ng equity na nangangahulugang ang iyong stock ay tumataas sa halaga ang iyong cryptocurrency ay tumataas sa halaga na pahalagahan at kumikita ka sa pamamagitan ng paggawa nito.

  2. Ang pangalawang paraan ng paglaki ng iyong yaman ay makakatanggap ka ng mas maraming cryptocurrency mula sa staking lending na ginagawa ang lahat ng mga bagay na iyon at makakakuha ka ng regular na mga bayad sa dividend mula sa iyong mga stock kaya sa ganoong paraan makakakuha ka uh sobrang cryptocurrency o fiat cash na maaari mong muling mamuhunan sa iyong stock.

  3. Ang pangatlong paraan na mapapalago mo ang iyong yaman na kung saan ay pinagsasama ang muling pamumuhunan kapag nakakakuha ka ng mga bayad na dividend at mga pagbabayad ng crypto at awtomatiko mong inilalagay iyon pagkatapos ay ginagamit mo ang bagong balanse upang makuha ang susunod na pagbabayad na magiging mas at higit pa at higit pa.

  4. Ang huling paraan na maaari kang kumita ng pera sa pamamagitan ng iyong mga dividend na pagbabayad ay paglago ng dividend kaya't ang iyong apy sa kung gaano ka talaga gumagawa mula sa mga dividend na iyon ay maaaring umakyat.

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Very useful post about Dividend Investing

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3 years ago

Investing is risky but worth it to try especially when i "boom"

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3 years ago