[For those wondering which is better] Why our family does 'both' index investing and high-dividend stocks
‘Index investing or high-dividend stocks, which one is better?’
When starting to invest, I think many people struggle with this at least once.
Hello, this is High-Dividend.
Our family does both index investing and high-dividend stocks.
It’s not a matter of which one is correct, but I will write about why our family does both.
The role of each in our family
In our family, we clearly separate the two roles.
Index investing: Growing for the future
Index investing is money for the future, such as retirement and children’s education expenses.
In our family, we intend to hold it for a long time and automatically invest a fixed amount every month.
High-dividend stocks: Cultivating a second income for the future
High-dividend stocks are for gradually cultivating another income source separate from our salary.
The dividends haven’t reached 100,000 yen per year yet, but they are increasing little by little every year.
We are currently using the dividends for living expenses and fun, but in the future, we want to grow them into one of the incomes that supports our household budget.
We use dividends for our current life
In our family, we use dividends for living expenses and family fun.
Since ‘growing’ is the role of index investing, we have decided to use dividends for our current life.
Since we became a single-income household and the money we can use freely has decreased, it is grateful to have a little leeway with dividends.
Above all, being able to feel in our current life that ‘it was good to invest’ is what gives us the strength to continue.
The reason for doing both is also largely due to ‘feelings’
To be honest, I think index investing alone requires less effort.
Even so, the reason we continue with high-dividend stocks is that the joy of receiving dividends supports us in continuing to manage our household finances.
Since index investing is for the future, I find it hard to feel the benefits in my current daily life.
When I receive dividends, I can really feel that I have money I can use for my life right now.
Our family’s allocation
Our monthly investment amount is over 80% in index investing.
For high-dividend stocks, we use money we have set aside in advance and only buy when we feel the timing is right.
What we consider in order to keep going
Our family values both saving for the future and the pleasure of receiving dividends, which is why we chose this current approach.
However, dividends can decrease or stop being paid out.
Also, both high-dividend stocks and index investments can fall below the invested amount due to price drops.
Our family also continues within a reasonable range, assuming that such things can happen.
Summary
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Index investing is for ‘growing for the future’
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High-dividend stocks are for ‘cultivating a second income for the future’
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Use dividends for your current life and enjoyment
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Our family’s monthly investment is over 80% in index funds
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The joy of receiving dividends supports us in continuing our household financial management
Which do you focus on, index investing or high-dividend stocks?
Please let me know in the comments if you’d like.
▼Click here for our household budget management system
https://note.com/haitouke_note/n/nb9881ce3d4f1
▼Click here for dividend records (September 2026)
https://note.com/haitouke_note/n/nff02ea4748bd
▼Click here for Haito’s self-introduction
https://note.com/haitouke_note/n/nfef7bdac50ca
*This article is a record of our household’s investments.
It does not recommend any specific financial products or stocks.
Stocks and investment trusts may fall below the invested amount due to price declines.
Please invest at your own risk.