What You’re Getting Wrong About Dividend Investing
Ivanna Hampton: Welcome to Investing Insights. I’m your host, Ivanna Hampton.
Does dividend investing create bad investor behavior? This strategy can split investors into two camps, those in favor and those against. Here’s how it works. A company will pay out part of its earnings to stock owners, typically quarterly. Those dividends can arrive as a check in the mail or cash in a brokerage account. Critics say this isn’t a bonus, but a cut into the total return. But income-focused investors don’t seem to mind.
David Harrell is the editor of Morningstar’s DividendInvestor newsletter. We talked about the psychology of dividends.
Welcome back to the podcast, David.
David Harrell: Thanks for having me back.
Hampton: Let’s start with…
