How Do Stock Dividends Work
The only post on dividends you need...and not one shilling of $SCHD
The dividend twitter-verse was in shambles when one of their own stepped a little bit outside the 3 acceptable tweets dividendooors are allowed to tweet:
Buy SCHD 0.00%↑
If you invest $XX.00 a year for Y years you get $1million
Cut all your spending and live froogal to buy dividends
We already wrote about the LARP’er extraordinnaire here:
FinTwit Agrees on Something...
This week FinTwit did something that they have never done before. They agreed. Did they agree on paying off low interest debt when you can earn more in a high-yield savings account is silly? No Was it whether or not Dave Ramsey is a grifter? Nope Can we finally say that
And tweeted about his rebrand to a broader topic of “finance guy”…because after showing you don’t even know what a vesting schedule is, you definitely have the financial chops to be an expert on all things finance…
But in honor of this saga, I was compelled to find the motivation needed to finally write a post about dividends.
If you follow dividends accounts, you may think of dividends as a magical gift from corporations to you. You bought their stock, so they just send you ‘mailbox money’ periodically to thank you.
And if you want to be wealthy, you just need to keep putting money into dividend stocks to grow a huge passive income stream to retire off of.
Unfortunately, many of these accounts don’t seem to understand the basic fundamentals of how dividends work and the purpose they play. So lets jump into all things dividends.