Why do so many investors love dividend investing and dividend snowball —even when a growth-focused strategy may ultimately produce greater wealth? In this episode of Moementum Finance, I sit down with investor @frasermcguire to explore one of the most debated topics in investing: the psychology behind dividend investing. Fraser argues that the biggest advantage of dividends may not be higher returns—but the psychological comfort they provide. Receiving regular dividend payments can help investors stay calm during market downturns and avoid emotional decisions. But if long-term growth is your goal, do you really need to spend decades building a dividend portfolio, or could you simply invest for growth first and purchase that same income stream later? We had a thought-provoking discussion about investing, financial independence, real estate, and what it truly means to build wealth. In this interview, Fraser shares his journey from growing up in a working-class family to becoming a successful real estate and stock market investor. We discuss the life experiences that shaped his philosophy on money—from buying and selling homes, investing through the COVID housing boom, and becoming a landlord, to redefining success through family, time, and purpose. In this episode, we discuss: ✔️ Why dividend investing feels so rewarding psychologically ✔️ The truth behind the "dividend snowball" strategy ✔️ Why dividends aren't "free money" ✔️ Home bias and global diversification ✔️ ETFs, real estate, and portfolio construction ✔️ Renting and buying a home in Canada ✔️ Financial independence and the evolution of FIRE ✔️ RESP vs. TFSA strategies for families with children ✔️ Sahil Bloom's Five Types of Wealth ✔️ Building wealth without sacrificing what matters most Fun Fact: Fraser is in the policing field.🚔 He has two daughters (3 months old and 3 years old).👒 👉 Question for you: Do you believe that dividend investing actually make you a better long-term investor because it helps you stay invested during market downturns? Or do you prefer focusing purely on total returns? Let me know your thoughts in the comments! https://youtu.be/PJZY-BCctwg?si=6JY6IaDICWVIYC8w
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23 Comments
Richard Verhaeghe@ravonar · 10d
Gary Gill made a good comment in one of his videos- if dividend investing is what makes you feel good, then that’s all that matters; and, for some people, let’s say a single parent, those $200-$300 of dividends landing in your TFSA could give you the peace of mind that if you need have a car emergency or unexpected bill, you can take it from there without putting it on a credit card. Im primarily growth but that clicked with me; whatever floats your boat. Im guessing that’s why $SCHD literally has a cult following.
Max Penders@mjpenders · 10d
My argument is that the effort that people spend on building their dividend investing portfolios would be far more effectively spent on doing the research required to convince themselves not to chase dividends. I think everyone has some irrational urge to chase yield and dividends, but being an adult means learning to change your behavior to fit reality.
MP @melpel · 9d
Really interesting interview, and I appreciated how Fraser articulated his thoughts on the FIRE movement. Thank you
CoderDonna @coderdonna · 10d
Why one or the other? Why not both? I like both for myself. But I'm a Libra and we're all about inclusion.
Fraser McGuire@frasermcguire · 10d
Had a blast Moe! It was nice to reflect back on the last 40 years!
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