The Long View

Daniel Peris: The Case for Dividend Investing

Aug 13, 2024

Daniel Peris, who oversees dividend-focused portfolios for Federated Hermes and has authored several investing books, delves into his new work on dividend investing and the market's paradigm shift. He discusses the crucial role of dividends and cash flows, contrasting traditional financial metrics with the ownership mindset. Peris critiques modern portfolio theory and highlights the resurgence of dividends in investment strategies. He also touches on historical reflections on Russia and its impact on Western relations, weaving an engaging narrative of stability and market evolution.

49:40

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Episode guests

Daniel Peris

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Quick takeaways

Daniel Peris emphasizes the importance of understanding historical context in market dynamics, advocating for a return to dividend-focused investing rooted in cash flows.

He critiques the trend of companies prioritizing growth over dividends, noting a potential market shift as established tech firms begin paying dividends.

Peris predicts a paradigm shift towards cash returns and sustainability in investment strategies as stable interest rates prompt companies to reinstate dividend payments.

Deep dives

The Journey from Academia to Investment

Daniel Paris shares his unconventional career path from being an academic specializing in the history of the Soviet Union to becoming a portfolio manager in the investment field. He emphasizes the importance of historical context in understanding current market dynamics, noting that skills in communication and analysis are vital in both academia and finance. His transition to investment was marked by his realization of the significant disconnect between established financial theories and the realities of the stock market at the time. This experience led him to focus on dividend investing, which he views as a return to fundamental principles of investment based on tangible cash flows.

Intro

2min

From Soviet Studies to Dividend Investing

12min

The Evolution of Dividend Investing and Portfolio Theory

6min

The Transformation of Investing: From Business Ownership to Factor Strategies

3min

Navigating Dividend Yield and Market Dynamics

3min

Dividends and Investment Strategies in a Changing Market

19min

Historical Reflections on Russia and Western Relations

5min

On today’s podcast, we’ll chat with Daniel Peris about his new book, The Ownership Dividend: The Coming Paradigm Shift in the US Stock Market. Daniel oversees dividend-focused portfolios for Federated Hermes and has written several other books about investing, as well as a study of the former Soviet Union. Daniel began his investment career in the late ’90s as a stock analyst at Argus Research.

Background

Bio

The Ownership Dividend: The Coming Paradigm Shift in the US Stock Market

Getting Back to Business: Why Modern Portfolio Theory Fails Investors and How You Can Bring Common Sense to Your Portfolio

Storming the Heavens: The Soviet League of the Militant Godless

The Strategic Dividend Investor

Dividend Investing

“Will Dividend Investing Reign Again?” by Daniel Peris, federatedhermes.com, April 25, 2024.

“There Is Nothing Special About Dividends,” by Larry Swedroe, Morningstar.com, April 10, 2024.

“The Retreat of Dividends and the Changing Nature of the Stock Market,” by Daniel Peris, americanaffairsjournal.org, Fall 2022.

Other

William Goetzmann