If you’re below 40, you should not be going for stocks that pay dividends. Or really, dividends above 1-2%.
If the company pays a dividend to its shareholders, particularly a large one, that company has reached a point of stability. They can no longer attract investors by appreciation, and are having to make up for that. The company is no longer a growing company, relatively speaking.
These stocks of course will be less volatile, and that is great for people in their 50s and 60s who are trying to PROTECT their wealth.
However, you’ll do much better with newer companies that are more driven by innovation. Rule of the thumb: the higher the dividend, the more stable and the less it will return.
If you’re in your twenties or thirties, you have no business investing in big blue chips like McDonalds, Home Depot, Johnson and Johnson, Ford, Walmart, etc. Instead you should be looking into companies like Palo Alto, Tesla, Chipotle, Salesforce, Meta, Delta.
Remember, you are young! You have time to get any losses back. Ignore the volatility and keep up with your stocks!
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