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Good Time to Look at Apple and Other Growth Stocks That Pay Dividends?
“'While many investment strategies have lagged the tech-heavy S&P 500 and Mag 7 stocks over the past year, high dividend growth and high free cash flow has kept up,' Chris Senyek, chief investment strategist with Wolfe Research, wrote in the report."
“'Dividend investing is an attractive long-term structural investment strategy, it’s tried and true,' Ben Kirby, co-head of investments of Thornburg, wrote in an email to Barron’s. 'It tends to generate attractive returns and, in many cases, better returns to the overall market, usually with less volatility.'”
This ought to be a fun thread. Something about dividends seems to get some folks animated.
It usually does over @ Bogleheads.
As a dividend investor I don't really care about dividends that are 0-3.0 yield. So what if Apple pays 0.55%? IMO that's not worthy of a 'dividend discussion' other than noting it's a tech company paying *something*. Whoop-de-doo. I'll stick with well-covered dividends from traditional sources, most of which are 'value' companies.
Dividend investing is supposed to be boring. Growth investing, by its very nature, is anything but.
@rforno. I think you have articulated something that resonates with me as a retired person…it’s not necessarily the dividend that I appreciate or even need but the boring ride. When I compare funds and ETF s I now pay more intention to the worst year and max drawdown. Boring is good.
@rforno ,a divi gives a company inclusion into a fund such as VIG, a dividend growth fund for folks who don’t rely on that fund for its dividend. I view a dividend as a statement regarding a company’s stability of cash flow. Personally, except for a pure growth sleeve, I prefer funds which throw off distributions.
@larryB, I consider multiple criteria when selecting funds. These criteria include expense ratios, quality of management/analyst teams, investment firm behavior, trailing returns, max. drawdown, and worst year. As I approach retirement, there is increased emphasis on max. drawdown and worst year statistics.
The first thing I look for is what is wrong with the article. This one is pretty easy. mmm...since div investing hasn't worked for so long let's mention the top tech companies with Divs. Well, the top 10 tech in QQQ are about 47%. QQQ pays under 1%...no need to look further.
The tech giant's great performance had nothing to do with Divs. Did GOOG, NFLX, AMZN ever paid divs?
I would think high Div (growth or not) ought to be looked in conjunction with debt levels. Many companies are still paying low interest rates on legacy borrowing which may come up for refinancing / repayment
All of these thoughts are true and belong in a useful matrix which should be consulted before deciding to buy. Another message board features a woman (retired) who insists that her holdings show pristine balance sheets and a div. yield of at least 3%. She's a smart one.
Comments
https://www.morningstar.com/stocks/tech-stock-dividends-are-changing-face-dividend-growth-investing?
As a dividend investor I don't really care about dividends that are 0-3.0 yield. So what if Apple pays 0.55%? IMO that's not worthy of a 'dividend discussion' other than noting it's a tech company paying *something*. Whoop-de-doo. I'll stick with well-covered dividends from traditional sources, most of which are 'value' companies.
Dividend investing is supposed to be boring. Growth investing, by its very nature, is anything but.
Let the joust begin!
I consider multiple criteria when selecting funds.
These criteria include expense ratios, quality of management/analyst teams, investment firm behavior,
trailing returns, max. drawdown, and worst year.
As I approach retirement, there is increased emphasis on max. drawdown and worst year statistics.
(That’s not to say one is more meaningful or valuable than the other.)
mmm...since div investing hasn't worked for so long let's mention the top tech companies with Divs.
Well, the top 10 tech in QQQ are about 47%. QQQ pays under 1%...no need to look further.
The tech giant's great performance had nothing to do with Divs. Did GOOG, NFLX, AMZN ever paid divs?
There's other message boards ???