“Focusing on total revenue is a more efficient strategy.”

If you want to generate cash flows from your stock portfolio, you will need to buy dividend stocks. These assets often offer dividends once a quarter, but there are some stocks that give monthly dividends.

However, receiving current cash flows does not necessarily mean you are choosing the best investment. One couple worth $2.7 million recently shared their dividend investment Not the best strategy for young investors.

“Focusing on total revenue is a more efficient strategy,” they explained.

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Here are some reasons why that advice makes sense and why young dividend investors should consider before adjusting their portfolio:

Young investors don’t need to rely on cash flow right away. The positive cash flow of real estate shows that growth is scalable, but it doesn’t have the same advantage for stock investors.

Some dividend investors chase high yields and ultimately get low returns. For example, real estate income (NYSE:o) Its yield is almost 6%, making it a popular dividend stock. However, stock prices have remained flat over the past five years. Meanwhile, tech companies with no dividends have more than doubled their value over the same period.

Dividend stocks make more sense if you need cash flow to cover your living expenses and want to reduce your risk. Most companies that offer cash distributions to investors are mature companies with the best growth days behind them.

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Another detail on dividends that makes them an unattractive strategy for younger investors is that they will be taxed. Most dividends are taxed at the long-term capital gains tax rate, which is a better transaction than the regular income tax rate. However, by investing in a reliable company that doesn’t give dividends, you can avoid taxes on stocks entirely.

Additionally, dividends keep the company profitable. Giving cash to investors limits the amount of money a company can reinvest in itself. Amazon (NASDAQ:amzn) Reinvestment of profits into the business regularly, and those reinvestments helped Amazon launch Amazon Web Services, acquire Whole Foods and launch important projects that earned revenue.