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Meb Faber: The Dividend Growth Myth

TedTed
in Fund Discussions
FYI: A few weeks ago, I was sipping coffee, thumbing through Barron’s as I do every weekend. It’s a way in which I keep a pulse on what’s going on in our space.

Though I never consciously pay attention to ads, on that particular morning, one caught my eye – a big full pager from Schwab, below. They were trumpeting their low-cost trading commissions in the ongoing fee compression in the investment management space. (Since this ad, Schwab and others have since continued to lower costs, with Schwab now down to $4.95!)
Regards,
Ted
http://mebfaber.com/2017/04/26/dividend-growth-myth/

Comments

  • VintageFreakVintageFreak
    You know, I could never bring myself to investing in funds with "Dividend Growth" in their name. Then Vanguard also seems to have another flavor. One fund is for "stocks which have history of increasing their dividends" and other I think is "stocks which are providing high dividends".

    For me if a fund's stocks delivers dividends or not is part of the process that goes into one invests in the stocks, how "safe" is the dividend, does the fund have a mandate for producing "income" and are dividends one of the ways fund expects to achieve that goal, etc. etc. etc. So sounds like a offshoot of "value" investing for me.

    I'm darn sure Dividend Growth investors think they are investing in "Growth" funds. And I'm not saying "Growth" funds should not have stocks that do not have dividend distributions (while there was a time growth meant tech and dividends were incidental).

    The point is words like "Strategic", "Absolute", etc. seem as worse as "Dividend Growth" to me. I'm expecting articles e.g. "The Myth about Strategic investing" and "The Myth about Absolute Return investing" as well. Just need the right time for someone to do that. Let's wait and see.
  • MarkMark
    Just another article that isn't worth the cyber digits used to produce it. I couldn't tell if he was comparing brokerage firms or dividend growth investing. Maybe there was a point in there somewhere but it went right over my head. I do have some respect for the author but this looked like it was quickly put together because he had to get one out.
  • rforno

    Anyone want to join me in funding/launching the Cybernetic Strategic Dividend Equity Growth and Absolute Return Income Performance Fund? And also, how about the closed-end Dart Throwers Syngergistic Enhanced Equity Fund?

    I have the fund sponsor's name already picked out: Magic Eight Ball Investment Advisors. :)
  • MarkMark
    Count me in. I dunno what it is but with a name like that it's got to be good.
  • PRESSmUPPRESSmUP
    Send out a note saying it's going to close at the end of May....
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