Are dividends actually the best strategy for building wealth—or do they simply make investing feel better? 💰 In this clip from my conversation with Candace from @mountainfinance, we dive into the psychology behind dividend investing and why seeing those dividend payments hit your account can be a powerful motivator—especially when markets are falling. 📉 💵 Candace explains why total return may matter more for younger investors with a long time horizon, while investors approaching retirement may gradually want to shift toward a growth-and-income strategy that generates more cash flow. She also shares why she believes there’s no single “wrong” way to invest—as long as you understand the trade-offs and choose a strategy you can actually stick with. We also talk about the psychological benefit of dividends during market downturns, the difference between a 10% market correction and a 20% bear market, and why younger investors have one massive advantage: time. ⏳ Candace makes the case that even investing small amounts—sometimes just $5 or $10—can add up through the power of compounding over decades. 📈 🔥 The bigger lesson? Financial success isn't necessarily about having a million-dollar portfolio. It's about using the money you have wisely, having a plan, and consistently sticking to it. 💬 Question: Do dividends motivate you to invest more—or do you prefer focusing purely on total returns? https://youtu.be/jQkKX5UqFWY?si=dbJREBvkLlaaw5Tz
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Ronan @ronan · 20dEdited
They’re not the best way to build wealth, but they’re a psychological advantage for those who need it Dividends on their own are simply one part of the total return equation. It’s a company transferring cash from a balance sheet to you (or funded by debt), the value of the stock goes down by the amount paid. It’s also important to differentiate dividends and distributions. Many new investors call much of these income funds “dividends” when that’s simply not the case. Actual company dividend investing has much more merit to an investor depending on their desired goals (Canada dividend tax credit, psychology, kinds of companies, dividend growth, etc.)
Mr Financial@mr.financial · 20d
Who HAVEN'T you interview Moe??? 😯 Exceptional work rate buddy
Catherine @ffcatherine · 20d
“Holy banana bread” Candace makes so much sense! Dividends are more of a psychological advantage than anything else! Focusing on total return is ideal & planning where investments are placed & how they will be taxed is another part of the plan … Crazy to think back in 2023 it cost $10/trade & now most ETFs & stock can be purchased for free allowing one to easily start with smaller $ amounts without those extra fees is totally awesome too Thanks Moe for interviewing Candace she knows her stuff I’ve watched many of her videos 🙌🏼
Martin McClellan@star87 · 20d
Getting dividends for doing nothing is glorious. Have some growth too in the mix!
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