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Do dividends matter in investing?
By Life Finance Blog  •  May 18, 2020

Dividend investing, like value investing, is sometimes seen as being old fashioned, compared to growth investing, which focuses on the sexier tech sector and fast growing companies which seldom pay any dividends while furiously re-investing for future growth. So, do dividends matter in investing anymore?

To answer this, we look at the role dividends have played in the total returns in various markets around the world. We look at the 2000 to 2020 period, which starts right after the first tech wave, and which has seen the rise of tech stocks such as Google, Ali Baba and Amazon. We find that even in the recent era of growth investing, dividends accounted for two thirds of total returns on average. Also, and more surprisingly, you do not need to faithfully re-invest your dividends to get most of the benefit from dividend investing.

Do you know the only thing that gives...
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By Life Finance Blog
The Life Finance Blog is a blog which seeks to explore, educate and elucidate our understanding of financial issues in living the life we want.
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