There are some downsides of having a dividend portfolio but in this post I am not giving you any advice on the stock market or telling what you should or should not do. Investing in dividends is a passive way to make money without you having to do anything but hold the stock or do not sell the stock. There are some downsides of investing into a dividend portfolio.
The company can cut the dividend:
Yes the board on the company can cut the dividend in half, they can stop paying the dividend all together if they want to. Sometimes companies do that when they are having some hard times so you have to do your own research before buying any stocks on the stock market.
Dividend paying stocks do not have much growth:
Most companies that do not pay a dividend so more growth than a company that pays a dividend. When paying dividends to shareholders, that money could be used to make the company better but they pay dividend. So dividend paying companies do not see much growth. In the video below, I will go over more about the downsides of a dividend portfolio
