Just came across this one on Twitter and it made me laugh since in this topic we’re – once again – discussing capital gains versus dividends.
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I’m the guy on the left, BTW.
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I didn’t want to argue that one is better than the other, just give OP one more approach to consider (which could simplify the portfolio management burden).
I’m absolutely planning on touching the principal (just at a lower rate than longterm growth hopefully). I expect the trend of lower dividends in large caps to continue.
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Thanks for the “income“ level explanation, indeed this was a side I did not consider.
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I saw a nice one on reddit the other day: guy posted a screenshot of his TQQQ position and was told “good enough to screenshot is good enough to sell some”, stuck with me!
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Thanks for the link, missed that blog and I really liked it 
Regarding dividenfs because you dont want to „touch the principal“. As other commenters have mentioned, this is a psychological distinction, not a financial one.
When a company pays a dividend, its share price drops by aprox the same amount, meaning the investor’s wealth decreases just as if they had sold a small portion of their shares. Selling a proportional amount of shares—whether full or fractional—creates the same cash flow as a dividend, but with greater flexibility, smoother income, and often superior tax treatment, especially in Switzerland where capital gains are tax-free while dividends are fully taxed. Over the long term, controlled share sales allow the principal to grow at the full market rate, while dividend-heavy strategies may reduce growth due to lower reinvestment by companies. In practice, generating income through strategic share sales is financially identical to—yet often more efficient than—relying on dividends.
Imo, There is really little rational reasoning for dividend strategies in switzerland - at any stage of you investment ciycle
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Can we not become reddit please? By that I mean having a place where us misguided and emotional bumpkins who want to discuss dividends can discuss dividends without interruptions.
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monkey brain thread.
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Dividend-discussion interruption was not my intention. I thought it was part of OP’s question:
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