Dividend losers focus on excuses that prevent them from achieving their goals of financial freedom. Dividend Winners on the other hand, focus on creating specific goals, and the steps to make them a reality.
The first excuse that dividend losers use relates to the fact that since dividends get taxed at 15% per year, this somehow makes dividend stocks an inferior investment. Dividend losers use companies like Berkshire Hathaway (BRK.B) to prove their point. They do like that fact that it has managed to reinvest dividends from its various subsidiaries into more businesses. They hate to have to research a company, formulate a strategy and execute that strategy however. Reinvesting the dividends from their income portfolio seems like too much work for dividend losers. This makes dividend investing a losing proposition to dividend losers. Unfortunately, there is only one Berkshire Hathaway, while there are over 100 dividend champions – companies which have raised dividends for more than 25 years in a row. While dividend losers are looking for the next Berkshire Hathaway, dividend winners are creating their own Berkshire Hathaway’s with the generous dividends from their portfolios.