Originally Posted by Bongleur
Historical data easy to find. Corresponding data for dividend cuts is not. Maybe use dividend funds and compare years of reduced dividends and time to recover...
Makes no difference. You are traveling down a dead end path. We seem to have a lot of these "dividend" threads popping up. It's an illusion, and one that is not helping you.
Focusing on dividends is wearing blinders. Total return is not an "approach", it is reality, it is arithmetic, it is all that matters.
Maybe we need a sticky on this to refer to - when a company pays dividends, it is in effect, selling some of its value. If it didn't distribute it, it would be retained and the NAV would increase by that amount.
You can do that, when and with the amount you decide. I can see no advantage to letting these companies make that decision for you.
Further, by investing only in high div payers, you are investing in a subset of the market, and that entails sector risk. I know people "feel" that div payers are more stable, but I have yet to see anyone provide actual evidence of this.