What You’re Getting Wrong About Dividend Investing [Video]

A look at the pros and cons of this popular income strategy.

David Harrell, editor of Morningstar’s DividendInvestor newsletter, makes the case for dividend investing. However, he also points out the pitfalls, like dividend fallacy, that income-focused investors should watch out for.
00:47 Why Investors Are Divided About Dividend Investing

02:21 The Pitfall of Dividend Fallacy

05:24 Warning Signal for Dividend Traps

06:48 Should Investors Focus on Total Return Rather Than Dividends Alone?

08:12 How a Dividend-Focused Investment Strategy Can Help with Safe Withdrawal Rates

09:31 Why Investors May Not Want to Create Their Own Dividend

10:53 Why Long-Term Performance Matters When Looking at Dividend Stocks Versus the Broder Market

14:03 Are Share Repurchases Better Than Dividends at Returning Capital to Stock Owners?

15:25 Drawbacks of a Dividend-Focused Investment Strategy

18:05 Has Dividend Investing Created Bad Investor Behavior?

Read about topics from this episode.

Subscribe to the Morningstar DividendInvestor newsletter. https://newsletters.morningstar.com/mdi/learn

3 Dividend Stocks for November 2024 https://www.morningstar.com/stocks/3-dividend-stocks-november-2024-2

Are Better Days Ahead for Dividend Investors? https://indexes.morningstar.com/insights/analysis/bltc6cade989e6a4c54/are-better-days-ahead-for-dividend-investors

Is a Dividend Stock Comeback Around the Corner? https://www.morningstar.com/markets/is-dividend-stock-comeback-around-corner

New Dividend Stocks: Can Meta and Salesforce Help Revive the Classic Strategy? https://www.morningstar.com/stocks/new-dividend-stocks-can-meta-salesforce-help-revive-classic-strategy-2

There Is Nothing Special About Dividends https://www.morningstar.com/portfolios/there-is-nothing-special-about-dividends

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Read what our team is writing:

David Harrell https://www.morningstar.com/people/david-harrell

Ivanna Hampton https://www.morningstar.com/people/ivanna-hampton

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