Money

Dividend stocks

Blue Cross Blue Shield Stoc
Feb 10

Best dividend stocks?

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  • Google / EngH🤞🏻🙀☠️
    Don’t buy for dividends
    Feb 100
  • Amazon TCSlave
    Total return is what matters. Dividends stocks are a fugazi
    Feb 100
  • Capital One EXwk33
    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
    Feb 109
    • Microsoft / Product
      Brazuka

      MicrosoftProduct

      PRE
      Bain & Company
      Brazukamore
      Companies today prefer to stock buybacks instead of dividends since it's more tax efficient
      Feb 10
    • Capital One EXwk33
      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.
      Feb 10
    • Microsoft / Product
      Brazuka

      MicrosoftProduct

      PRE
      Bain & Company
      Brazukamore
      It's more tax efficent. That's all the reason you need. Timing is a bad comment since you can do predictable stock buyback as well.
      Feb 10
    • Amazon TCSlave
      This is just wrong. Also outperform is not an indicator of risk assesment
      Feb 10
    • Capital One EXwk33
      @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.
      Feb 10
    • Microsoft / Product
      Brazuka

      MicrosoftProduct

      PRE
      Bain & Company
      Brazukamore
      Your hint is utterly incorrect
      Feb 10
    • Capital One EXwk33
      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...
      https://www.ft.com/content/e7fb2144-fbae-11e7-a492-2c9be7f3120a
      Feb 10
    • Capital One EXwk33
      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)
      Feb 10
    • eBay / IT
      manorama

      eBayIT

      BIO
      Coder
      manoramamore
      Why is there tax efficient in stock buybacks ?
      Feb 11
  • Microsoft / Product
    Brazuka

    MicrosoftProduct

    PRE
    Bain & Company
    Brazukamore
    If you're buying extreme value stocks for dividend might as well buy bonds instead and mix it up with growth stocks.
    Feb 100
  • Amazon kudobear
    Nrz
    Feb 100

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