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re: Investment advice
Posted on 6/1/16 at 2:08 pm to Fat Bastard
Posted on 6/1/16 at 2:08 pm to Fat Bastard
The problem is, its much easier to build wealth with a dividend portfolio than it is with real estate and the reason is dividend reinvestment. If you have a portfolio that spits off $100k in dividends and a piece of real estate that spits off $100k in rent, which one makes more in 5 years? A commercial lease will have 7.5% increases every 5 years. A dividend growth portfolio will have not only 7-10% dividend growth it will also buy you more shares every year.
I have a ton of real estate but I still think a dividend growth portfolio is better.
I have a ton of real estate but I still think a dividend growth portfolio is better.
1
Posted on 6/1/16 at 2:26 pm to dabigfella
and which one is easier to attain? a dividend portfolio of 100k in cash a year? or RE positive cash flow of 100k?
Think about it. My dividend returns are nothing compared to RE based on cash on cash returns. Look, i like dividends also but I'll take RE anyday.
equity capture, principal paydown, way better return based on cash flow, greater tax advantages. no brainer.
show me where dividends gives you all those advantages. Show me the leverage you have buying stocks for dividends. It is not a better cash on cash return. My value of my RE may drop but guess what? rent keeps coming in as do tax advantages among others! What happens when your dividends are cut? Or a company goes under?
Think about it. My dividend returns are nothing compared to RE based on cash on cash returns. Look, i like dividends also but I'll take RE anyday.
equity capture, principal paydown, way better return based on cash flow, greater tax advantages. no brainer.
show me where dividends gives you all those advantages. Show me the leverage you have buying stocks for dividends. It is not a better cash on cash return. My value of my RE may drop but guess what? rent keeps coming in as do tax advantages among others! What happens when your dividends are cut? Or a company goes under?
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