RBS 118: Debunking the Myth that Higher Dividends Result in Higher Returns
I seem to be fighting a never ending battle against "dividend investing." Don't get me wrong, dividends are an important part of the returns equity investors receive from stocks and stock funds. The problem comes when we misunderstand the nature of dividends and the role they should play in our portfolio. One mistaken belief I see is that dividends are necessary for compounding, or that a higher dividend yield results in more compounding. Nothing could be further from the truth, as we discus...