We often hear that Millennials are terrible investors because most Millennials entered the workforce during the 2008 financial crisis.
Afterward, many hesitated to invest after seeing their families lose money, and those who often invested very conservatively. Many have avoided stocks, even the more conservative high dividend stocks.
Which begs the question – have Millennials changed their investment strategies? Let’s take a look.
At this time, Millennials are facing their second economic recession with the 2020 pandemic (or third recession if we count the 2001 September 11th financial swing). Being recession veterans, they’re betting on a strong economic recovery.
This has been seen by Financial Brokerage Platforms like Robinhood, popular among Millennials. The platform gained 10 million users from 2016 to 2020 and added 3 million users during the pandemic.
By living through a strong economic recovery, Millennials show they are more comfortable with the stock market and purchasing stocks with their creative ways to make money.
Dividends are a portion of the company’s earnings that are distributed to shareholders. In addition to the value of a company’s stock going up, dividends are an additional payment sent to shareholders simply for owning the company.
Dividend payments are sent typically monthly, quarterly, or on an annual timeline, and determined by the company’s board of directors.