Episode #182: Unmasking the Flaws of Dividend Investing

This week’s show is all about dividend investing, which is a popular investment strategy amongst a lot of people. In the episode, we discuss what it is, where the cash comes from, and alternatives for management, such as whether to pay dividends or hang on to the cash. We also pay attention to why the strategy can seem misplaced.

Show Notes

[01:50] Definition – Grant starts off the conversation by defining dividend investing.

[09:22] Growth and value companies – Grant shares some different growth and value companies that have growing revenues and profits at an above-average rate.

[13:35] The dividend yield – Grant explains what happens when the dividend yield becomes too high.

[23:18] Paying a dividend yield – Grant shares the reason for value companies to pay a dividend yield.

[29:15] Dividend stock – Grant explains why it’s advantageous to have some exposure to dividend stock.

[35:00] Share repurchases – Grant shares why repurchasing shares is beneficial to shareholders and why a lot of politicians are not happy with it.

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