Seymour's post | Quora

Are Stocks with High Dividends the Unsung Heroes of Investing? Let’s be real for a second—when most people think about investing in the stock market, they’re usually chasing the next big thing. 🚀 Maybe it’s that hyped-up tech stock or some “disruptor” that’s all over the news. But you know what’s never really gone out of style (and honestly, kind of underrated)? Stocks with high dividends. Why Dividends Deserve More Hype I used to think dividends were for my parents’ generation—a little boring, super stable, and not really my vibe. But then I actually started paying attention to my own finances. Here’s the thing: high-dividend stocks can be like that friend who always pays for dinner and never asks for anything in return. Every quarter (or sometimes even every month!), you get a little (or not-so-little) payout just for holding onto your shares. That’s passive income, baby! Imagine this: you’re invested in a company that pays a 5% annual dividend yield. For every $1,000 you’ve got in that stock, you’re getting $50 back every year—just for existing. And if you’re smart and reinvest those dividends? That compounding effect is no joke. Over 5–10 years, it can seriously add up. But Wait—Are High Dividends Always a Good Thing? Okay, so before you go loading up on every stock with a juicy yield, here’s the tea: not all high dividends are created equal. Sometimes a stock’s dividend yield is high because the company’s share price tanked (red flag alert!). Or maybe they’re paying out more than they can afford just to keep investors interested—that’s not sustainable. I learned this the hard way with a certain energy company (not naming names, but if you know, you know). The dividend looked amazing… until a few months later, they slashed it because their profits dried up. Lesson learned: always check the payout ratio (how much of their earnings go to dividends) and do a little digging into the company’s financial health. My Go-To High Dividend Picks So what stocks have actually treated me well? Personally, I’m a fan of the “boring” stuff: utilities, telecoms, and certain REITs (real estate investment trusts). Think companies like Verizon, AT&T, and some well-established REITs. They’re not flashy, but they’re consistent. I remember my first dividend payout—honestly, it was only a few bucks, but it felt like I’d cracked some secret code. Fast forward a couple of years, and those payments are a regular part of my income stream. It’s also a huge psychological boost during market dips; even if the stock price is down, those dividends are a steady reminder that patience pays (literally). How to Find Quality High Dividend Stocks Look for companies with a track record of steady or growing dividends. Check out the dividend payout ratio—ideally, it should be below 70% for most industries. Diversify! Don’t put all your eggs in one basket (or sector). Consider dividend-focused ETFs if you’re just starting out. And one more thing—don’t get obsessed with yield alone. Sometimes, a slightly lower but more sustainable dividend from a well-run company is way better than a sky-high yield that could disappear tomorrow. My Takeaway: Steady Wins the Race So, are stocks with high dividends the secret sauce to getting rich quick? Not exactly. But if you’re looking to build wealth steadily, diversify your income streams, and sleep a little easier at night, they’re seriously worth your attention. I love the feeling of getting paid just for investing in solid companies. It’s not just about the money—it’s about the confidence and stability that comes with it. Trust me, your future self will thank you for giving dividends a second look. What about you? Have you had any wins (or fails) with high-dividend stocks? Drop your stories or questions below—let’s get this dividend discussion going!