Everyday Life Teaches us Dividend Investing

Dividend investing in essence is nothing but slow and steady wins the race. Right from being kids to teenager to adulthood, our lives are full of examples of dividend investing. Unknowingly we all embrace it, we all follow it, and we all practice it, and majority of us are successful in it. However, we cannot see it because it may not reflect in greenbacks and bank balances.

  • When we are kids, our parent’s pay us single digit dollar amounts for house chores and yard work. We don’t get more perhaps knowing that we cannot ask for more. We learn the value of hard work and understand there is no free lunch – We collect a small dividend dollar and put it in bear jar for later use.
  • We spend years in high school preparing to go to college. Every year we collect dividend of knowledge.
  • When we are teenagers, we work whole summer (interns, co-ops) and get paid in low four figures. We are happy about it. We know the small effort that we put in can be leveraged after graduation. Unknowingly, we do our own due diligence for getting a particular internship. We collect a small dividend of experience.
  • When in college, we spend four, five, six years slowly working through the maze of weekly assignments and semester exams in hope of graduating someday. We don’t get degree in first year itself! We collect small dividend very year to make it happen.
  • We graduate and go to work in industry; we are at the bottom of the chain. Slowly and steadily we perform (with yearly review) and rise in the organization. We do not become c-level executives from day one. Yes, the 20 something entrepreneurs also work extra hard to run their own company and typically have had some experience in their early life which molded their entrepreneurial thinking. Again we are still continuing dividend collections.

Now when it comes to investing, why we do not work hard, do our own due diligence, understand what is good for us?

  • We didn’t give monetary credits to our parents for work done (we always asked them to pay cash, why don’t we invest in companies that gives us cash back)
  • Why do we start trust somebody else with our money (we didn’t trust friends promising us to help during college exams – we studied on our own)?
  • Why do we get influenced by predictions is business media (we didn’t get influenced by college friends predicting exam questions)?

We can find many such examples in our daily life. So why don’t we use these principles that life has taught us – build it slowly over a period of time! Dividend investing is building it over a period of time.

2 Responses to “Everyday Life Teaches us Dividend Investing”

  1. Dividend Tree says:

    Viva: Glad you liked it. Thanks for stopping by.


  2. Vivacious says:

    DT, Delightful post! I like the analogy.

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