Dividends Do Nothing For Shareholders
Managements often mouth that paying a dividend is doing something for shareholders. It is precisely the opposite. Instead they are saying, “Sorry, we can’t do
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Why Retaining Earnings Makes More Sense Than Dividend Distributions
I have written numerous articles about dividends and compounding. To sum up, in order to create the biggest amount of wealth, you would want to
Continue readingWhy Tobacco Stocks Outperform
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
Continue readingDividend Investing: The 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
Continue readingThe 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”
Continue readingA Long-Term Investor Wants The Share Price To Trade Around Intrinsic Value
Let’s assume you buy Disney at 100 and one year later it trades at 130. A 30% return in one year, isn’t that great! Some
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