[erik14th]

but if you're not reinvesting your passive will shrink over time due to inflation(I'm not sure about US but here in Brazil the dividends are subtracted from the stock valuation), so even then it requires some kind of maintenance. Capitalism is inherently competitive, if some way to generate capital is too easy it will become hard quite fast due to competition. If you can still make some money out of investing is because most people don't have the money or education to invest.

[grondilu]

> (I'm not sure about US but here in Brazil the dividends are subtracted from the stock valuation)

What is that about?? Usually the market prices the dividend removal, but that only lasts so long. At any point during the year the market prices it back, in anticipation of the next dividend.

[erik14th]

in Brazil it's actually subtracted, if your stock is worth a dollar and you receive a cent of dividend the stock will be priced at 99 cents. Like, it's as if the dividend money you receive is actually a part of the stock you own.

[loco5niner]

I'm also very curious about this. Did some research, and got no answers...

[loco5niner]

My 401(k) automatically reinvents my dividends.

> if some way to generate capital is too easy it will become hard quite fast due to competition.

For the general population, saving money to invest is not easy.