Dividends a Fallacy? This Is My $3,000 Per Month Response

For years now, dividends have been declared dead more times than a Hollywood franchise villain. “Who needs yield when there’s growth?” they say. “Reinvest your capital gains instead,” they claim. “Buy back the dip and ride the rocket ship.” Yet here I am, earning $3,000 a month in dividends—real money, deposited into my account like clockwork—while others continue chasing the next shiny speculative object like caffeinated squirrels with Robinhood accounts.

So, let’s have an honest conversation. Are dividends a fallacy? A relic of the past? A dusty old coupon-clipping strategy for retirees wearing beige cardigans?

Not in my world. In my world, dividends are freedom.

The Great Dividend Debate

The “dividends are dead” narrative has been around since the dot-com boom. And it always resurfaces whenever growth stocks outperform the broader market, or when a Silicon Valley founder says “We don’t pay dividends because we reinvest everything for hypergrowth” and everyone nods like that’s gospel truth.

There’s a strange elitism around it. As if living off your portfolio’s cash flow is somehow quaint. As if needing income makes you financially unsophisticated. Never mind that some of the richest people on earth—Warren Buffett, for one—receive millions in dividend income every year. Not capital gains. Not options. Plain old dividends.

Let’s be clear: dividends are not dead. But the myths around them need to be put to rest.

Myth #1: Dividends Are Boring

If your definition of excitement involves checking your portfolio 20 times a day, sweating out earnings calls, and rage-selling after a stock dips 8% on no news, then yes—dividends are boring.

But boring is underrated.

Boring is what pays the bills, funds your retirement, and lets you sleep through market crashes without clutching your chest. Boring is waking up on the first of the month to find a fresh deposit from Realty Income, Johnson & Johnson, or Enbridge waiting for you like a loyal friend.

If you think dividends are boring, you’re missing the point. It’s like calling rent checks boring when you’re the landlord. Predictability isn’t dull—it’s powerful.

Myth #2: Dividends Are Inefficient

Ah yes, the efficiency argument. “Why let a company pay out dividends and force you to deal with taxes, when they can just reinvest the money for higher returns?”

Sure. And why work a job when your company can just reinvest your salary in itself?

Dividends are a choice—a way for a company to say, “We’re profitable enough that we can reward shareholders directly.” They’re a signal of maturity, discipline, and confidence. It’s not a bad thing when a company can’t reinvest every dollar efficiently and chooses to return some of it to you.

Plus, if taxes are your primary concern, consider this: in many countries, dividends receive favorable treatment. And if you're using a tax-sheltered account like a Roth IRA or TFSA? That “inefficiency” argument falls flat.

My Journey to $3,000/Month

Let me back up and tell you how I got here.

I didn’t inherit a trust fund. I didn’t strike it rich on an IPO. I built this income stream over the course of a decade by consistently investing in dividend-paying stocks, reinvesting the income at first, and then transitioning to cash flow as the portfolio grew.

In the early days, it was $50 here, $100 there. I remember the first time I received a dividend big enough to buy groceries for the week. That felt like winning the lottery.

Fast forward to today: over 30 dividend-paying companies across sectors, market caps, and geographies. Monthly income averages $3,000 and growing. Some months it's more. Some months it's less. But the consistency is there. And so is the peace of mind.

What’s in the Portfolio?

Here’s a snapshot of how I structure my dividend portfolio:

Dividend Aristocrats: These are companies that have raised their dividends for 25+ years. Think Coca-Cola, Johnson & Johnson, Procter & Gamble. Bulletproof balance sheets, global brands, and cash-flow machines.
REITs (Real Estate Investment Trusts): I love REITs. They pay out at least 90% of income, and I hold names like Realty Income (O), Agree Realty (ADC), and Canadian Apartment Properties REIT. They keep the income coming every month like rent.
MLPs & Utilities: These sectors are made for income investors. Enbridge, Enterprise Products Partners, and NextEra Energy are staples in my income stream.
International Dividends: Don’t sleep on companies outside the U.S. Canadian banks, European telecoms, and Asian industrials add currency diversification and fat yields.
High-Yield ‘Cautious Bets’: A small slice of the portfolio is reserved for 7-10% yielders with higher risk. These are actively monitored and rotated as needed.

I reinvested dividends aggressively until I crossed the $1,500/month mark. At that point, I began letting some of the income hit my cash account. By $2,000/month, I could cover my core fixed expenses. At $3,000/month, I don’t just survive—I have financial breathing room.

Why Dividends Work (Even When Prices Don’t)

Let me hit you with a scenario. It’s 2022. Markets are down 20%. Your growth stocks are bleeding red. What’s a dividend investor doing?

Still getting paid.

It’s not theoretical. In 2022, my portfolio dipped with the rest of the market. But 90% of my dividend-paying companies held or raised their payouts. Even in the chaos, the cash kept flowing. That’s not a coincidence. That’s the power of investing in companies that make real money and return it to shareholders.

Compounders vs. Pretenders

There’s a difference between high-yield traps and dividend compounders. The former lure you with unsustainable yields and slash payouts the moment they’re squeezed. The latter are companies with consistent free cash flow, growing earnings, and the discipline to raise dividends year after year.

Finding these takes work. It means reading earnings reports, understanding payout ratios, and tracking dividend coverage. But it’s worth it. Because these are the companies that grow your income while you sleep.

My rule of thumb? If a company isn’t growing its dividend over time, it better be giving me a damn good reason not to.

The Emotional ROI

Here’s something Wall Street can’t quantify: the emotional return on investment.

When you build a dividend portfolio, you stop obsessing over prices and start focusing on income. Your whole mindset shifts. Instead of selling when prices fall, you ask: “Are dividends safe? Is the business intact?” If yes, you hold—or buy more.

It’s liberating.

I’ve watched friends panic-sell during downturns because they didn’t have income to lean on. Meanwhile, I’m sipping coffee and watching O, MO, and ABBV drop deposits into my account. That emotional buffer is priceless.

Critics Still Gonna Critic

Don’t get me wrong—I’m not saying dividends are the only way. There’s a place for growth stocks, ETFs, and alternative assets. I own a few myself. But the anti-dividend rhetoric? It’s tired. It’s smug. And it’s often wrong.

Critics will say you’re giving up capital appreciation. I say: have you seen the long-term charts of dividend growers?

Critics say dividends don’t matter. I say: tell that to someone who lives off them.

Critics say you’re missing the “big upside.” I say: I’d rather have a dependable $3,000 a month than pray for a 10x moonshot that may never land.

What If You’re Just Starting?

Good. That’s the best time to start. Here’s what I’d do if I were building from scratch:

Start with a plan. What’s your monthly income goal? Break it down by year. Mine was $1,000/month in five years, then $3,000/month in ten.
Pick reliable payers. Focus on companies with a strong dividend history, low payout ratios, and stable free cash flow.
Reinvest. At the beginning, every dollar counts. DRIP your dividends. Let compounding do the heavy lifting.
Diversify smartly. Across sectors, countries, and types of dividend payers. Don’t put 50% into a high-yield REIT and pray.
Track your income, not just your gains. Use spreadsheets or apps that let you monitor projected monthly cash flow. Watch it grow.
Ignore the noise. Dividends are slow and steady. Social media is fast and frenzied. Choose your pace.

Final Thoughts: Why I’ll Never Quit Dividends

I don’t need dividends to feel exciting. I need them to be consistent. Dependable. Sleep-enhancing. Life-funding.

The idea that dividends are a fallacy is a Silicon Valley hallucination. It’s the same logic that says profits don’t matter, that you should always “just buy more calls,” and that “YOLO” is a retirement plan.

Let them play that game.

I’ll be over here, watching my $3,000/month income grow like a tree I planted years ago. Not flashy. Not hype. Just strong roots, steady branches, and seasonal harvests that pay me in actual, tangible cash.

Dividends aren’t dead. They’re just not loud. And that’s exactly why they work.

TL;DR?

If you want to build wealth and sleep well, ignore the hype. Build your dividend machine. Aim for $3,000/month in tax-efficient, diversified income. Let others chase fantasy; you’ll be busy cashing checks.

Dividends a fallacy? Please. They’re the only thing in finance that hasn’t lied to me.