Does Dividend Investing Still Work?
02/14/24 • 28 min
Stocks that grow their dividends have outperformed non-dividend-paying stocks over the long-term, but not in the past 5, 10, and 20 years. Why are non-dividend paying stocks outperforming dividend growers, and will it continue?
Topics covered include:
- What message do companies say when they initiate, grow, or cut their dividend
- What is dividend smoothing
- How have dividend payers performed relative to non-dividend payers
- Why have non-dividend payers, which are primarily growth stocks, outperformed dividend payers
- How the payout ratio and return on equity impact dividend strategies
- What are reasons to include dividend strategies in your portfolio
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Show Notes
The dividend puzzle by Fischer Black—The Journal of Portfolio Management
Can Dividend Investing Rise From the Dead? by Jon Sindreu—The Wall Street Journal
Einhorn Says Markets ‘Fundamentally Broken’ By Passive, Quant Investing by Matthew Griffin—Bloomberg
Investments Mentioned
WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS)
WisdomTree Emerging Markets High Dividend ETF (DEM)
Vanguard Dividend Appreciation ETF (VIG)
iShares Core S&P 500 ETF (IVV)
Related Episodes
429: Which Inflation Protection Strategies Worked and Which Didn’t?
342: Is Another Great Inflation Coming?
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Stocks that grow their dividends have outperformed non-dividend-paying stocks over the long-term, but not in the past 5, 10, and 20 years. Why are non-dividend paying stocks outperforming dividend growers, and will it continue?
Topics covered include:
- What message do companies say when they initiate, grow, or cut their dividend
- What is dividend smoothing
- How have dividend payers performed relative to non-dividend payers
- Why have non-dividend payers, which are primarily growth stocks, outperformed dividend payers
- How the payout ratio and return on equity impact dividend strategies
- What are reasons to include dividend strategies in your portfolio
Sponsors
LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs
Betterment - the automated investing and savings app
Insiders Guide Email Newsletter
Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter
Our Premium Products
Show Notes
The dividend puzzle by Fischer Black—The Journal of Portfolio Management
Can Dividend Investing Rise From the Dead? by Jon Sindreu—The Wall Street Journal
Einhorn Says Markets ‘Fundamentally Broken’ By Passive, Quant Investing by Matthew Griffin—Bloomberg
Investments Mentioned
WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS)
WisdomTree Emerging Markets High Dividend ETF (DEM)
Vanguard Dividend Appreciation ETF (VIG)
iShares Core S&P 500 ETF (IVV)
Related Episodes
429: Which Inflation Protection Strategies Worked and Which Didn’t?
342: Is Another Great Inflation Coming?
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Previous Episode
Transforming Financial Regrets into Portfolio Gains: Five Strategies for Navigating Investment Emotions
Humans are wired to feel regret. Here's how to learn from financial regret to become a better investor.
Topics covered include:
- What cognitive biases make feelings of financial regret unavoidable
- We analyze two regret case studies - one from David and one from a Plus member
- Why do we avoid big regrets but manage through small ones
- Five cognitive tricks to help manage financial regrets
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Show Notes
Related Content
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Investments Mentioned
Vanguard Long-Term Bond ETF (BLV)
Vanguard Extended Duration Trs ETF (EDV)
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Next Episode
Unraveling the Truth About ETFs: Benefits, Analysis, and the Indexing Bubble Myth
How the ETF market is changing, why ETFs should be your preferred investment vehicle, and how to analyze ETFs to generate better investment performance.
Topics covered include:
- How large have fund flows been away from active mutual funds into ETFs
- How big are the largest ETF families and how has their market share grown
- Why the rise of active ETFs blurs the distinction between active and passive investing
- Why there doesn't appear to be an indexing price bubble, but the rise of passive investing has impacted volatility and decreased stock price informativeness
- A framework for how to analyze markets and select ETFs for your portfolio
Sponsors
Long Angle is a private community of 2,500 very high net worth investors who leverage their collective expertise and scale to access and underwrite some of the world’s best alternative asset investments. Learn more here.
NetSuite – Get your free KPI checklist
Insiders Guide Email Newsletter
Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter
Our Premium Products
Show Notes
Global Fund Flows Dominated by Fixed-Income and ETFs—Morningstar
It’s Official: Passive Funds Overtake Active Funds by Adam Sabban—Morningstar
ETF Issuer League Tables—VettaFi
Global ETF Market Facts: three things to know from Q3 2023 by Samara Cohen—iShares
Investments Mentioned
SPDR® S&P 500® ETF Trust (SPY)
JPMorgan Equity Premium Income ETF (JEPI)
Avantis US Small Cap Value ETF (AVUV)
Related Episodes
426: Which is Best – Active or Passive, ETFs or Funds?
321: How to Analyze Complex Investments
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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