The Relevance of Dividend Irrelevance

Dividends are irrelevant as a predictor of differences in expected returns. Building investment portfolios based on dividends results in lower expected returns when yield is in high demand, a lack of diversification, tax inefficiency, and an arbitrary retirement spending rule dictated by corporations. Basing investment or consumption decisions on dividends does not make sense.

Referenced in this video:
The Dividend Disconnect: https://drive.google.com/file/d/15Z94...
Settling the Size Matter: https://drive.google.com/file/d/1G3da...
Stock Market Returns and Consumption: https://drive.google.com/file/d/1kVBK...
Consuming Dividends: https://academic.oup.com/rfs/advance-...
Should You Chase Dividend Stocks to Combat Inflation and Rate Hikes?: https://www.dimensional.com/us-en/ins...

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