You're buying an asset, this can always be sold to cover your initial investment. You're also gaining $20 cash that can be put into other investments, so they g

You're buying an asset, this can always be sold to cover your initial investment. You're also gaining $20 cash that can be put into other investments, so they gains are compounding. Like every thing else in the stock market you're also hoping that the stock value and dividends increase over time. So in reality you get a return much earlier, but even after that you still own a cash generating asset in perpetuity. If it was purely the cash flow you wanted you would buy a bond, but once the bond period is over that's it, you own nothing except the cash taken out. If you want to accumulate wealth but not necessarily cash flow high growth stocks are probably a better option.