Tag: dividends

Why Tobacco Companies Have Been A Good Investment

Some months ago I wrote an article about the historical performance of so-called “sin-stocks”. Tobacco companies have performed the best in the US, and alcohol stocks in the UK. In this article I briefly argue for the reasons why and why they most likely continue to outperform. High margins and cashflows: Margins are very high. For example, 27% of the

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Dividend Investing: Don’t Be Fooled By Your Dividend Bias – Marginal Rate Of Return/Incremental Return

This article covers these topics: Why dividend investing is not necessarily the most efficient way to compound capital. Dividends are paid out of book value, but usually reinvested above book value. Why accept to receive a dividend at book value when you can for example sell shares at two times book value? Where is the best place for your capital?

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The Foolishness Of Dividend Investing

This is a very short article based on two much longer articles: Don’t be fooled by your dividend bias – sell shares to create “income” Dividend investing: Don’t be fooled by your dividend bias – marginal rate of return/incremental return Don’t be fooled by your dividend bias: DRIP is inferior to internal compounding On the 30th of April 2020 Royal

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