Thanks, Daniel, for that nice historical view of this topic. These days I am mainly a dividend investor. One could buy a dollar for much less during the pandemic but today most of those opportunities are at tiny market caps or in obscure places and these are not my focus. Once in awhile I find an opportunity for upside in the listed US and Canadian markets, but overall the markets are too high for that. Most of my positions are held for the dividends and dividend growth. My subscribers, though, often seem to want "price targets" for these stocks. But this is not a lens through which I see the world today.
Just a small thought that might be more broadly philosophical: I have never understood, as a matter of correct or valid definition, how "value investing" is the genus of "dividend growth investing." It might be the case that there is overlap between dividend growth stocks whose lower prices mean higher yield and IRR and "value" stocks (dividend growth stocks that are also undervalued in the intrinsic value sense), but this fact alone doesn't make the former a species of the latter.
Great piece. Unfortunately market structure has made fools of people who like to buy low and sell high. If only investors shopped for stocks like they do cars or TVs.
Thanks, Daniel, for that nice historical view of this topic. These days I am mainly a dividend investor. One could buy a dollar for much less during the pandemic but today most of those opportunities are at tiny market caps or in obscure places and these are not my focus. Once in awhile I find an opportunity for upside in the listed US and Canadian markets, but overall the markets are too high for that. Most of my positions are held for the dividends and dividend growth. My subscribers, though, often seem to want "price targets" for these stocks. But this is not a lens through which I see the world today.
Just a small thought that might be more broadly philosophical: I have never understood, as a matter of correct or valid definition, how "value investing" is the genus of "dividend growth investing." It might be the case that there is overlap between dividend growth stocks whose lower prices mean higher yield and IRR and "value" stocks (dividend growth stocks that are also undervalued in the intrinsic value sense), but this fact alone doesn't make the former a species of the latter.
Great piece. Unfortunately market structure has made fools of people who like to buy low and sell high. If only investors shopped for stocks like they do cars or TVs.