mathjak107
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 27, 2005
- Messages
- 6,205
That math us useless.
It is nice to own dividend growers because that is how you make money
that is correct , while paying a dividend can be alot of smoke and mirrors as even the most financially poor companies try to keep the dividend gowing ,raising dividends is proclaiming good financial health.
while dividends themselves do not mean much the psychology of them has historically had them out perform because investors liked that show of good health.
but from a math standpoint there is no reason they are any better or worse. about the only real benefit is you get a check without the hassle of having to sell a piece on your own. of course the flip side is the taxes on dividends are usually not qualified and do cost more ,.
as head of s&p research silverblat said lately it has been the non dividend payers the last 6 years that have out performed their larger cousins by 5 to 6% a year ,at least up until just this year.
since in the mechanics of things there is no inherent advantage to receiving dividends and just reinvesting them anyway i agree with those who much rather be in control of their tax liability by keeping them as low as possible and going for the same total return without them.
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