Source Post

Are Dividends Useless? Selling Shares vs. Dividend Income

The creator argues against the common sentiment on Reddit's r/financialindependence subreddit that dividends are useless and equivalent to selling shares. They contend that dividends provide a psychological and practical benefit by offering consistent income without forcing the sale of assets, especially during market downturns, contrasting this with the risks of selling principal in a bear market.

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Tickers discussed in this post

TGTNeutralMedium ConvictionSignal-backedSecondary

Target's share price increased after its ex-dividend date, despite a temporary dip, demonstrating that dividends are not a drag on stock value.

WMTNeutralMedium ConvictionSignal-backedSecondary

Walmart's stock price recovered and increased after a temporary dip on its ex-dividend date, showing dividends don't permanently suppress share prices.

SYYNeutralHigh ConvictionResearch Only

Sysco is a high-quality dividend compounder that provides predictable dividend information.

HESMNeutralHigh ConvictionResearch Only

Hess Midstream is a high-quality dividend compounder that provides predictable dividend information.

FASTNeutralHigh ConvictionResearch Only

Fastenal is a high-quality dividend compounder that provides predictable dividend information.

HIINeutralHigh ConvictionResearch Only

Huntington Ingalls is a high-quality dividend compounder whose dividends are unlikely to be cut.

UNHNeutralHigh ConvictionResearch Only

UnitedHealth is a high-quality dividend compounder whose dividends are unlikely to be cut.

KONeutralHigh ConvictionResearch Only

Coca-Cola is a high-quality dividend compounder whose dividends are unlikely to be cut.

MSFTNeutralHigh ConvictionResearch Only

Microsoft is a high-quality dividend compounder whose dividends are unlikely to be cut.

NVDANeutralHigh ConvictionResearch Only

Nvidia is a high-quality dividend compounder whose dividends are unlikely to be cut.

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