I agree that dividend investing can work well in some cases, but there are some importing topics left out of this discussion. The first is stock selection. High yield dividend funds only pay around 3%, so to have good dividends, you need to pick individual companies, which is very hard for most people to do well. Many companies cut dividends when times get tough, so again knowing what to look for when choosing a stock is critical. Also, returns from dividend investing can often trail the market as a whole, so while it can be good for those looking for income, it is not always a great way to build wealth. Collecting dividends is passive, but researching and choosing the companies to buy is not.