Dividend investors only invest in companies that pay regular dividends. We believe you should be agnostic and invest in any company that will likely be a good investment – whether it pays dividends or not. Berkshire Hathaway has been a good investment because it doesn’t pay dividends. In this article, we explain why: retaining earnings…
Introduction and summary: I have been a shareholder in Accenture for many years and the only regret I have is that I don’t have a bigger position. Accenture is a stock I intend to own and add on meaningful pullbacks. Accenture is a mature company, but there is a lot to like about the business…
Compounding dividends and DRIP investing are popular. That is understandable because dividends have significantly contributed to long-term gains in the stock market. It’s essential that you reinvest dividends to get the returns of the market, but many investors mistakenly focus solely on dividend stocks because of this. But a company has many opportunities to allocate…
The marginal rate of return is the most crucial factor to compound efficiently. In the long run, your pension is more dependent on the marginal rate of return than the original investment. If you are into dividend investing, you should study the marginal rate of return on your investments. We argue that dividend investing is…
This is a very short article based on two much longer articles: On the 30th of April 2020, Royal Dutch Shell cut their dividend by 67% (I have a tiny position in the stock – 0.05% of my portfolio). As expected, the comments on Seeking Alpha are full of anger and resentment over the smart…
