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Terminus @terminus_pos on x 75.6K followers
Created: 2025-07-10 09:13:00 UTC
π Lot of news lately, but let's jump back into our investment series... Last week we busted the dividend myth. Today, let's talk about what actually works: total return strategy π
The numbers don't lie: π΅ Dividends contributed only ~1/3 of total equity returns since the 1960s π΅ S&P XXX averaged XXXX% annually since 1957 (when reinvesting dividends) π΅ Pure dividend strategies consistently underperform total return approaches
Here's the breakthrough insight: instead of hunting dividend stocks, invest in growth companies and create your own "dividends" by selling 3-4% annually π€―
Why this works better: π Companies reinvesting profits grow faster than those paying them out π You control WHEN you need income (tax optimization) π You enjoy the full compound effect of exponential growth
Real example: $100k invested in growth-focused index funds historically becomes much more than the same amount in dividend-focused stocks over XX years.
The compound effect is like a snowball rolling downhill: every year it gets bigger and faster. Dividend payments interrupt this process by forcing you to restart smaller snowballs π
In Southeast Asia, we're seeing this principle in crypto too. Projects focused on building utility (like what we do at @terminus_pos by enabling seamless payments) often outperform those just distributing tokens to holders π
Are you team "steady dividends" or team "let it compound"? Tomorrow we'll explore how this applies to cryptoβ¦
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