Video by Ben Felix via YouTube
Source
Dividends are irrelevant as a predictor of differences in expected returns. Building investment portfolios based on dividends results in lower expected returns when yield is in high demand, a lack of diversification, tax inefficiency, and an arbitrary retirement spending rule dictated by corporations. Basing investment or consumption decisions on dividends does not make sense.
Referenced in this video:
The Dividend Disconnect: https://drive.google.com/file/d/15Z94LD8QTPbb0ETAixg_zMA0Ew5bdJat/view
Settling the Size Matter: https://drive.google.com/file/d/1G3daMZp3XbP0Qj1cG-p3VpcJzSYkmd1c/view
Stock Market Returns and Consumption: https://drive.google.com/file/d/1kVBKtMWXgvlZ8bQzARgK91uhIbUBOXQC/view
Consuming Dividends: https://academic.oup.com/rfs/advance-article-abstract/doi/10.1093/rfs/hhac010/6530299
Should You Chase Dividend Stocks to Combat Inflation and Rate Hikes?: https://www.dimensional.com/us-en/insights/should-you-chase-dividend-stocks-to-combat-inflation-and-rate-hikes
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