From Morningstar: 2024-08-20 06:41:00

Investment historian Daniel Peris discusses the history of dividends, paradigm shifts in dividend investing, and his book “The Ownership Dividend.” Despite recent companies like Alphabet and Meta initiating dividends, he believes a shift back to normal interest rates and the end of buybacks is needed for dividends to regain importance.

Peris anticipates a paradigm shift where dividends become central as share price appreciation alone is insufficient. He highlights the need for companies to compete for capital in a changing landscape with normal interest rates and the end of unlimited growth prospects.

Geopolitical factors, such as de-globalization and political challenges, are contributing to the shift in dividends. Peris raises concerns about the lack of consensus on economic policies like neoliberalism and globalisation, leading to a decline in trust in the system and potentially impacting investors in a low-trust society.



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