From Morningstar: 2024-04-15 08:52:00

Investors often prefer dividend growth strategies, despite financial theory suggesting dividends should not affect stock returns. Historical data shows Dividend Aristocrats have outperformed the S&P 500 during negative market periods. However, studies show dividend growth strategies don’t necessarily add value, as companies with common factors perform similarly regardless of dividends. Larry Swedroe emphasizes focusing on strategies that offer exposure to desired factors, rather than fixating on dividends.



Read more at Morningstar: There Is Nothing Special About Dividends