Dividend-Paying Stocks vs. Non-Dividend-Paying Stocks

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

Your Mutual Fund Stinks. Can This Wall Street Invention Change That? by Jason Zweig—The Wall Street Journal

Asset Camp

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)

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