Dividends Do Nothing For Shareholders (Why Would A Shareholder Prefer Not To Receive Dividends?)

Dividend investors only invest in companies that pay regular dividends. We believe you should be agnostic and invest in any company that is likely to be a good investment – whether it pays a dividend or not. Berkshire Hathaway has been a good investment because it doesn’t pay a dividend. In this article, we explain…

The Case Against DRIP And Compounding Dividends (Arguments Against Compounding Dividends)

Compounding dividends and DRIP investing are popular. That is understandable because dividends have been a significant contributor 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…

Dividend Investing: The Marginal Rate Of Return/Incremental Return (Incremental Return On Investment)

The marginal rate of return is the most important 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 really ought to study the marginal rate of return on your investments. We argue that dividend…