My friend STE shared with us this pretty good piece by Hartford Financial Group on the case for dividend investing. The Power of Dividends: Past, Present, and Future I think STE appreciates that while we are successful and has worked for us in the past, we should sometimes ask ourselves a question:
Investing in dividend stocks sounds like a sensible approach. But does the evidence back it up that if you keep holding and rejuvenating a portfolio with dividend stocks, you achieve something?
By asking questions like this, it allows us to look deeper for evidence. I think beyond that, if the evidence is weak, the research may give you clues why it’s weak and whether you have ways to tweak things. This paper is data focus but it probably doesn’t explain much to prove if you invest in dividend stocks, you earn excess returns over the S&P 500. It…