๐ง Are Dividends Food for the Soul!? The Best Reasons Beginners Want to Keep Going
Hello, I'm Kattobei!
I have over 10 years of experience in stock investing.
I used to lose a lot of money on growth stocks and went through some pretty tough times, but...
now I continue to invest steadily, focusing on high-dividend stocks.
There is something I've been thinking about again recently.
"Dividends really are food for the soul..."
This time, I'd like to introduce 3 points why dividends become a 'reason to keep going' for investment beginners!
๐ 1. The feeling of 'getting money' becomes an investment reward
When you first start investing, everyone feels:
"When do I actually make money?"
"Doesn't nothing happen with stocks until they go up?"
In that context, dividends are a system where you receive money periodically, such as every few months or once a year.
Moreover, you get them just by holding the stock, without having to sell.
This is a huge motivation for beginners!
โ For example...
๐ฆ Buying convenience store sweets with dividends
โ Feeling like your cafe bill is free
๐ฃ Getting enough money to cover a meal out!
The moment you feel 'I'm glad I invested' comes around properly once every few months.
This 'reward feeling' becomes the driving force that keeps you from quitting investing.
๐ 2. Even if the stock price drops, it's easier to endure because 'well, there are dividends'
When I was doing growth stocks,
I would panic as soon as the stock price dropped even a little, sell, and regret it... over and over again.
But high-dividend stocks are different.
Even if the stock price drops, 'I don't panic because there are dividends'
This sense of mental stability is extremely important.
โ For example...
Even if the stock price is down 5%, you can think, 'The dividend yield is going up, so this might actually be a chance to buy more'
The fact that you are 'receiving' income leads to confidence
If there is a track record of dividends, you can also feel at ease with the company
In other words, it becomes harder to be swayed by 'short-term price movements' right? This is also
the biggest point for overcoming the 'moments when beginners want to quit investing'!
๐ 3. Because you can 'see the accumulation,' you want to keep going for a long time
The amazing thing about dividends is that
even if it's a small amount, there is the 'joy of accumulation.'
๐ด First dividend โ a few hundred yen
๐ด Next quarter โ 1,000 yen range
๐ด One year later โ over 10,000 yen per year!
In this way, you can really experience the 'feeling of growth' even with small amounts.
โ Furthermore, if you continue for a long time...
๐ You may receive dividend increases
๐งฑ The number of shares held increases with additional investments
๐ Annual dividends also increase through the power of 'compound interest'!
This is like a feeling where dividends are 'nurturing your investment life.'
It is a mechanism designed to be enjoyed over the long term without being swayed by immediate stock prices.
โ Summary: Dividends are more than just 'money,' they are a 'mental stabilizer'
To summarize once more,
the top 3 reasons why dividends make you want to keep investing are these ๐
๐ฏ Top 3 reasons why dividends make you want to keep going
The feeling of receiving them = becomes a reward for investing
Easier to endure mentally even in a falling market
You can see the growth accumulating even with small amounts
For me personally, it was precisely because of dividends that I was able to continue investing for over 10 years.
And even now, I enjoy building my portfolio without stress, feeling like I'm watching over a "dividend tree" that is growing little by little.
For those of you just starting to invest,
please try "dividend investing" at least once!
You will surely see value beyond just "getting money" ๐
๐ท Recommended Hashtags
#Dividends
#HighDividendStocks
#StockBeginner
#TipsForContinuingToInvest
#SalarymanInvestor
Next time, I plan to write about topics like "How much do you need to invest to get a certain amount of dividends?" ๐
If you have any topics you're curious about, please let me know in the comments or via DM!
๐ If you're interested in this article, I also recommend these!
โถ๏ธ Kattobei's Investment Note Navigation [Summary of All Articles & Reading Guide]
๐ I've organized them by category, such as high-dividend stocks, US stocks, and beginner guides, so you can quickly find the articles you want to read!
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