Why don’t more young investors have dividend positions?
There are so many pros about having a position like this
- you start early building that position
- compounding start starts a lot earlier
- passive income will show sooner
I don’t get it
They want the big money now and think Dividend investing is for 60 year olds..
The magic thing about dividend investing is the compounding. Let it compound 30-40 years.
Look at Coca cola for Berkshire Hataway when they finished their position in 1994 (picture). The portfolio value with the same initial investment would be 1.8 billion less than S&P500, but the annual dividends is more than double of the S&P. and the Yield is also much higher.
Every single year Berkshire earns 477 million dollar more than S&P dividends per year by just holding the investment.
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So again, though, dividends per se do not provide any extra "compounding." There's no "magic." The same compounding would happen without the dividend. xitter.twitterapi.xyz/OptimizedPort/status/2…
You're right; it seems you don't get it.
Dividends do not make compounding "start sooner," as they are not free money created out of thin air.
Quite the opposite in a taxable account, actually - they hinder compounding due to increased tax liability.
Sep 10, 2026 · 2:42 PM UTC
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