Best dividend stocks?
TOP 14 Comments
- I would just buy a high dividend ETF. I would also ignore everyone aboves advice about only buying high growth stocks. Over the past century high dividend value stocks have consistently outperformed growth stocks.
Yes growth stocks have outperformed the last decade, but that is irregular and if I had to guess is unlikely to be the case for the coming decades
- That's why companies say they like buybacks, although reality is mostly because it helps with CEOs stock options verse dividends hurt stock options. It also allows CEOs to be more flexible since no one notices if you lower buybacks and everyone notices when dividends go down.
With that said a bunch empirical analysis shows CEOs are terrible at timing buybacks and shareholders are be better off with consistent dividends.
- @brazuka you are confusing yourself with the CEO of your investment. You have no control as the investor whether the CEO tries to time the market (hint they will buy back more stock when the company is doing well and less when it isn't which is effectively timing the market)
@TCSlave I am not sure if you are talking to me or Brazuka, but dividend stocks also historically are less volatile. So historically they had higher returns with less volatility for a much higher Sharpe ratio, which is what investors should be targeting.
- Except you mean it is exactly what happened last cycle Buybacks peaked as stocks peaked and hit a trough in 2009-2010 when stocks hit a trough. The first half of 2018 hit a new peak is buybacks after the market has gone up a ton the last decade...
- If you have any data to the contrary I would be interested to see it. If you Google historic return and Sharpe ratio of dividend stocks you will see that over any reasonably long time frame dividend stocks outperform (usually the best is the stocks that have the second highest quintile of dividends)