VIG - Dividends And Total Returns Are Not Mutually Exclusive: Consider VIG

2024-04-24 08:15:00 ET

Summary

• Contrary to popular opinion, dividends and total returns are not mutually exclusive.
• We discuss several reasons why paying a dividend can help a stock deliver better returns than it would otherwise over the long term.
• We also share why VIG could be an excellent vehicle for gaining exposure to these benefits of a dividend stock.

A common sentiment among many investors on Seeking Alpha today is that if total returns are your primary objective, you should forget about dividend stocks and invest heavily in tech stocks like Nvidia ( NVDA ) and cryptocurrencies like Bitcoin ( BTC-USD ), perhaps with an allocation to prominent companies like Berkshire Hathaway ( BRK.A )( BRK.B ) as well, to maximize your total returns over the long term. However, we believe this notion is misguided because it is grounded in recency bias, and it ignores the fact that dividends and total returns are not mutually exclusive....

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