What's in store for you:

1. Photo From My Life
2. Financial Thought: Dividends
3. Life Thought: Random Feelings
4. Good Sh*t: Elon Musk Biography

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Photo From My Life:

Financial Thought:

The Pros & Cons of Dividends: Lately, I’ve been having more conversations with friends and readers about dividends. Some are chasing yield for “passive income,” others are building dividend growth portfolios, and a few are wondering if they should even care about dividends at all. It’s one of those topics where the answer changes depending on your situation and stage of life.

From an investment standpoint, dividend growth is one of the better long-term signals of a company’s health. Businesses that steadily raise payouts often have durable earnings, disciplined capital allocation, and a track record of compounding both income and share price.

That said, chasing the biggest yield can be a trap. The stocks with the highest yields often underperform because the market doesn’t believe the payout is sustainable. The sweet spot tends to be companies with modest but steadily growing dividends.

I think a lot of the fascination with dividends comes from the idea of passive income. People love to come up with "their number." What is the amount they need to earn from dividends so they never have to touch their principal investment? But for most investors still in the wealth-building phase, dividends aren’t the most efficient way to get there. If you’re reinvesting them in a taxable account, you’re paying tax now on money you didn’t actually use. Letting the company reinvest profits internally or buy back shares can often be more tax-efficient.

Later in life, the math changes. Using dividends for income without having to sell shares can be a smart and stress-free withdrawal strategy in retirement. But that benefit usually comes at the end of the investing journey and not the beginning.

Dividends aren’t good or bad. Like most things in investing, it depends. The key is knowing when to prioritize growth, when to focus on income, and how to manage the tax trade-offs along the way.

Life Thought:

Pressure is a Privilege: I haven’t had much time to sit down and think this past week. Between summer chaos and work, the days have felt full. But through the noise, there’s been this feeling sitting with me that is worth sharing.

There's something beautiful about entrepreneurship. It's you vs. the world. It's a real “come to Jesus” experience.

When you run your own business, there’s no safety net (apart from your savings). No boss to blame. No PTO to fall back on. The success or failure of my businesses rests squarely on my decisions, my energy, and my effort. It’s the purest form of creating value. There’s no corporate layer. No abstraction. It’s me vs. the world. And that’s exactly what makes it so special.

There's an embedded fear in entrepreneurship. Every entrepreneur I know is afraid at some point. But, that fear has a great way of highlighting if a person can continue to act even when fear is present. How would your actions change when a deal falls through, a key team member quits, or you're staring down a tough decision alone.

I’m not saying everyone should be an entrepreneur. But I do think everyone should experience this feeling just once. To know what it’s like when there’s nothing between your current state and your dreams except the work you're willing to put in. It’s somewhat terrifying and exhilarating.

I feel so lucky to be in this position. The pressure is a privilege.

Good Sh*t:

Elon Musk's Biography:

I have mixed feelings about Elon Musk. Still, I can’t deny his ability to rally people and resources behind bold missions he genuinely believes in. That kind of conviction and intensity is probably as much a curse as it is a gift. I’m about halfway through his biography right now, and it’s given me a deeper appreciation for the "why" behind Elon. If you’re curious about his story, it’s worth the read.

Disclaimer: VDB Wealth is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.

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