Dividend investing is not a strategy. There, I said it (again). By this I mean that building a portfolio of stocks based on either high dividend yields OR their historical dividend growth rates does not an evidence based investment strategy make.
I wish to expand on this topic a bit, as on the surface it might appear I simply don’t like dividends, or that we evidence-based advisors favor companies that don’t pay dividends or don’t grow their dividends. That is not the case. I’m simply saying that when choosing what to invest in the yield of a particular investment or portfolio should be inconsequential.
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About Dividends…
Why you shouldn’t choose your investments based on dividend yields, such as pursuing a high yield strategy or a dividend growth strategy.
Muhs Wealth Partners
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