Im 28 and have been primarily investing in broad market ETFs like VTI for the past few years. Recently, Ive been reconsidering whether I should integrate dividend-focused stocks into my portfolio, partly inspired by my fathers philosophy.
Here is what I’m thinking:
\- Dividends provide a tangible income stream, which can be psychologically satisfying.
\- For someone early in their career, most dividends are reinvested anyway, meaning total return is often higher with broad market ETFs.
\- Dividend stocks can reduce volatility slightly, but they also tend to lag growth stocks over long horizons.
Im curious how others in their 20s or 30s approach this. Do you prioritize dividend income early, or focus purely on total return until you’re closer to needing cash flow? How has your perspective evolved as your portfolio grew?
Would love to hear examples from people who have experimented with both approaches over time.