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re: Beginner investors. My 2 teen kids.

Posted on 4/5/23 at 4:10 pm to
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2142 posts
Posted on 4/5/23 at 4:10 pm to
quote:

buy dividend stonks with low debt to asset ratios

Dividends generate taxable events whether desired or not. Picking individual dividend stocks is riskier than index investing and diversifying across hundreds or more companies. Dividends just reduce underlying value of stock by distributing to stock holders. I'd rather choose when to sell and invest in companies that use profits to grow my investment. Please dont teach your kids to chase dividend yield its a short sighted approach for those that think it's better to never sell shares.
This post was edited on 4/5/23 at 5:58 pm
Posted by lsugorilla
PNW
Member since Sep 2009
5574 posts
Posted on 4/5/23 at 4:19 pm to
quote:

buy dividend stonks with low debt to asset ratios


I was fixing to ask what this means
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
71581 posts
Posted on 4/5/23 at 7:29 pm to
quote:

Dividends generate taxable events whether desired or not. Picking individual dividend stocks is riskier than index investing and diversifying across hundreds or more companies. Dividends just reduce underlying value of stock by distributing to stock holders. I'd rather choose when to sell and invest in companies that use profits to grow my investment. Please dont teach your kids to chase dividend yield its a short sighted approach for those that think it's better to never sell shares.


Dividends provide an income stream. You can't benefit from a non dividend stock unless you sell it. Which isn't a bad move but now it's gone.
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