I would like to draw a reference post by GV which I thought he did really well in explaining the truth about dividend investing which many had overlooked. Readers of this blog would know that I am a proponent of cashflow investing which is a subset of dividend investing if you like to see it that way. The main difference between dividend and cashflow investing is that the former can pay out dividends through the cash they burn while the latter pays out dividends through their operating cashflow which can sustain for as long as the company continue their service. Let me explain the accounting terms behind this idea. When a company pays out a dividend to shareholders, the cash portion is usually reduced by the same amount being paid. In fact, investors should know that dividend payment is part of a cashflow from financing ......