Potential return to focus on cash dividends over buy low-sell high, signaling changing market landscape.
From Nasdaq: 2024-04-06 06:00:00
Daniel Peris, author of The Ownership Dividend, predicts a return of dividend investing. In a podcast with Motley Fool, he highlights the importance of free cash flow and the upcoming shift towards a cash-based investment approach. Peris believes that equities will soon compete for investor support on cash nexus grounds.
Published in January, Peris’ book coincided with Meta announcing dividends. His historical perspective uncovers why income streams in the stock market declined in the past decades. He anticipates a paradigm shift back to a focus on cash dividends instead of buy low-sell high, signaling a potential change in the investing landscape.
While companies like Meta and Salesforce have started reintroducing dividends, the market still favors growth over dividends. Peris believes a longer-term transition is underway, where equities will have to compete for investor support based on cash nexus principles. Although early, the symbolic dividend moves by some companies hint at a possibly broader sector shift in the future.
Read more at Nasdaq: Are We Headed for a Resurgence of Dividend Investing?