There are excellent resources available about the long-term benefits of investing in equities and specifically, equity index funds. Separately, there are resources available about dividend investing that a DIY investor can pursue. I started this series because nobody truly compared the two investing philosophies from multiple perspectives without the bias of whichever method they believe in.
Dividend Investing vs. Indexing series examines the issue from the vantage point of an individual investor without any of the filters and biases of either camp that has its share of diehard believers. The individual investor is often a victim of the financial industry. I care about the ‘retail’ individual investor because that’s who I am. Hope this series helps you in your thinking about an appropriate investment strategy for your FIRE journey.
Dividend Investing vs. Indexing
Part 1: This sets the background context and frames the debate from the context of passive income.
Part 2: This examines the flexibility of passive income in DGI using three investors in different stages of their lives with different objectives.
Part 3: This evaluates the role of dividend income in total returns regardless of which strategy you like to pursue.
Part 4: Choosing Indexing vs DGI is not an either/or strategy. What makes better sense depends on you and where you are in your investing journey.
Part 5: What about the risk of lagging the index in total returns? We examine this risk of DGI and the impact from both financial and life perspectives.
Part 6: Can you get the best of both indexing and dividend investing? Yes, you can. I share portfolio examples here on how to execute this strategy.
Ideas in Action
The following posts are real examples of practical application of the concepts discussed in the Investing series above.
Manage Portfolio Risk & Optimize Dividend with a Solid Utility.
Having Patience in a Dividend Stalwart.
Diversification in Dividends: Think Global