Pros and Cons of Dividend Investing

What are the pros and cons of dividend investing? Dividend investing is buying shares from companies that have a high dividend yield. These yields could be anywhere from 4%-6%, and sometimes even 8% percent. Usually, when a company is paying a high dividend, it means it is not a high-growth company. These companies are typically older, and more established and pay good income, hence the dividend. Historically, those companies also tend to be a little less volatile. So, many people will choose to buy the slow and steady stocks that pay the income. Unfortunately, over the last couple of decades that has shifted a little.

Even after 2022, which was a bad year in the stock market, the trend is that growth stocks like information technology stocks such as Apple and Google continue to do really well. This doesn’t mean that the dividend strategy is bad, but you have to set your expectations and understand that you’re going to have overall lower returns for any new money going to dividend stocks. Overall, the ultimate goal is to have your money working for you, and to always focus on investing for the long term

Have more questions? Contact Us

Casey Smith
President, Wiser Wealth Management

Click here to schedule a consultation with one of our financial planners.

Listen to Our Podcast:


Recent posts

  • When Helping Hurts: How to Set Financial Boundaries
  • Do you have to pay taxes on an inheritance?

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.