The Truth About Dividend Investing
Excess ReturnsAugust 30, 202300:30:45

The Truth About Dividend Investing

Investors love dividends. The idea of having money deposited into your account on a regular basis can be a very attractive one. As a result, dividend-based investment strategies have become very popular. But the reality of dividend-based strategies is often very different than what the marketing behind them would lead you to believe. In this episode, we examine the reality of dividend focused investing strategies and look at whether investors might be able to accomplish their goals more successfully with other approaches.

00:00 - Intro
00:35 - Why do investors love dividends so much?
03:08 - Why do companies prioritize paying dividends over other capital allocation choices?
04:16 - Long-term investing returns and dividends
07:34 - Dividends as a less than optimal value metric
09:28 - Dividends, buybacks and capital allocation
11:31 - Dividends as a quality metric
15:34 - Good and bad buybacks
18:18 - Pay the dividend at all costs
20:38 - Synthetic dividends as a dividend replacement and taxes
26:07 - Synthetic dividends and retirement accounts
27:17 - Dividends compared to other types of cash flows

JACK"S ARTICLE ON DIVIDEND INVESTING
https://blog.validea.com/put-down-the-dividends-and-slowly-walk-away/

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