I Hate Dividend Stocks

Go ahead. Say it. “Campbell, you seem to HATE a lot of things.” Yes, I guess I do. And hate is such a strong word. But I got your attention, didn’t I?

Look, I don’t really “hate” dividend stocks. They have their place in the investment spectrum. I’m just
not a fan of an investment strategy that includes dividend stocks. Let me explain …

Ask yourself, “Why do companies issue regular quarterly dividends to their shareholders?” The answer,
at least the theoretical answer, is that the company has nothing exciting to reinvest its profits in, so it’s
turning those funds back over to the shareholders to make better use of themselves.”

Wow! Think about that for a minute. The company is saying that has nothing new and exciting to invest
in internally. Not a new product. Not a new advertising campaign. Not an exciting new acquisition.

What kind of company has so little imagination that it would admit that?
And, of course, why would you ever invest in a company like that?

When I invest my hard-earned money in a stock, I want the possibility of a significant return.
By significant, I don’t mean a 7% mutual fund-type return. How will I ever retire to my new yacht on
returns like that?

No, I don’t want to invest in a pedestrian company, and I don’t want to settle for a pedestrian return on
my investment.

I’m sorry, but dividend stocks and companies don’t give me the right vibe. I want exciting stocks with
bold strategies. And that’s why I “hate” dividend stocks.

D.A. Campbell


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