- In my last article on this subject, I warned retirees that over-weighting dividend investors could lead to market lagging results. That certainly has been the case since.
- The truth is, not only is dividend investing lagging growth and the tech sector as measured by the triple-Qs, but it's also lagging even the S&P500.
- In this market, capital is being allocated to growth, innovation, and disruption. These firms typically don't pay dividends. It is a secular trend in my opinion, and has legs.
- I have nothing against dividend income/growth investing: I do it too. But a well diversified portfolio that also allocates capital to growth, international, and speculative growth categories will outperform.
For further details see:
Dividend Investing: Still Overrated And Still Badly Lagging The Market