Why You Need To Own Dividend Stocks

Incoming investing has fallen out of favor over the past few decades as investors have chased growth at any cost. At the same time, companies have chosen to favor capital reinvestment over capital returns.

This strategy makes sense if the business can achieve a high return on invested capital (one could argue if a business is achieving a high return on invested capital, it should wait to start thinking about returning money to investors).

However, despite companies' and investors' preference for growth in recent years, a vast body of evidence supports the conclusion that, over the long run, dividend stocks are better investments than growth plays.

Q1 2023 hedge fund letters, conferences and more

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