There are a million and one things to invest in that are far sexier than Dividend Paying Stocks. A quick list off the top of my head: IPO’s, options contracts, shorting, commodities, emerging markets, Bit coin and day trading. A lot of these things can actually make you a lot of money IF you know what you’re doing. And while I know the basics of most of that stuff, I’m certainly no expert and would most definitely lose money and so I stick with the less sexy.
The thing I love about Dividend Stock Investing is that it’s simple. Like even someone with only a low-moderate knowledge of investing can do it reasonably well. I mean, it’s pretty hard to go wrong when you’re buying companies like Johnson and Johnson, McDonalds or Chevron and holding them basically forever. The only thing that could go wrong is buying them at too high of a price, or panicking when the markets do down and selling. But, that’s more managing your emotions (fear and greed) than having insufficient investment knowledge.
Anyway, invest like a grandma. Short-term, you’ll have nothing to brag about to your friends at parties who may be talking about how they kicked butt with this IPO or how they destroyed XYZ with their fabulous day-trading. But, long-term? You’ll be rich. Just give it 20 years or so. In the world of investing, boring is preferable to sexy.