Here's More Proof of the Ineffectiveness of Dividend Stocks. And then some even agreed that dividends are almost a perpetual motion machine of growth in stock prices. Like the fact that shareholders are supposedly allocated dividend money from the real sector to their virtual and therefore the virtual world of share capital is constantly fueled by the real, because of what the prices of dividend stocks are growing by leaps and bounds, constantly closing dividend gaps. :)
To refute this nonsense, I will give an example of the results of investments of three funds of the Vanguard family for 10 years:
1. Red (VUG) — invests in developing companies. I.e, those companies, who don't bother with dividends, and reinvest the profit for further development.
2. Blue (VIG) — investing in company shares, who are constantly increasing their dividends from year to year.
3. Green (VYM) — investing in stocks of companies with high dividend rates.
The result speaks for itself. Emerging Equity Fund has overtaken dividend equity funds by almost a third in ten years. What, of course, natural and predictable. There can be no other option.. The explanation is simple — dividends are not paid from a good life, but due to the fact that the company has nowhere to develop and they stop growing. Therefore, they pay profit to shareholders in the form of dividends..
Well in Russia, maybe for another reason — Sort of, if they do not pay the profit to shareholders, then she will be grabbed by different slashes, millers and the like. Here you can still understand that dividends in such cases are simply necessary. :)
