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Does Dividend Investing Still Work?

Money For the Rest of Us

CHAPTER

Valuation, Indexing, and the Performance of Growth and Dividend Stocks

This chapter explores the impact of valuation and indexing on the performance of growth stocks and dividend-paying stocks, discussing the rise of price-to-earnings ratio in US growth stocks and its effect. It delves into the outperformance of non-dividend-paying stocks over dividend-paying stocks due to indexing, while highlighting concerns of some hedge fund managers. The chapter also discusses the importance of dividend investing for portfolio stability and compares the performance of dividend-focused ETFs.

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