I am 30 years old (can hold to stocks for longer) and currently invested in 11 different stocks positions in the US and EU - all of these companies are in the S&P500 and in the DAX and are in 7 different sectors like Energy, Consumer Staples, Banking, Logistics and Communications - and I have an annual dividend yield of 7,5% before taxes.

These are the only things I am financially invested in and I wonder, is it a good idea to keep looking for good dividend yields? Looking at the skyrocketing non-dividend-paying stocks like Tesla and Amazon, I feel a bit like I am missing out my strategy was wrong. But I always saw stocks as a mean to participate in the financial success of companies - which is if I am not mistaken only realized by dividends.

If I buy a stock only hoping that I can sell it for a higher price to somebody later - isn't it kind of playing a greater fools game if no dividends are involved?


There’s nothing to be gained by investing in dividend stocks just for a dividend. A dividend provides ZERO Total Return. Only share price appreciation does that. In addition, if received in a non sheltered account, dividends are tax inefficient.

You should be investing in high quality companies that are leaders in their sector with strong (and growing) free cash flow, low debt, and good management. If they pay a dividend, fine. If not, no big deal.

  • 3
    Can you edit and give some more details as to why dividends do not offer total return?
    – Nosjack
    Jul 7 '20 at 13:02
  • Nah, that would take too much effort given that I have written about this before. Read this ;->) Jul 7 '20 at 13:06
  • @Nosjack They make no difference because of the answers here: money.stackexchange.com/questions/27542/…
    – user253751
    Jul 9 '20 at 17:39
  • @user253751 - None of those answers got it completely right. They were close but no cigar. Jul 9 '20 at 18:08

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