A: Perhaps in the short term. But longer term, dividend-paying stocks remain one of the smartest, most efficient investments available. They account for 80% to 90% of total stock market returns over time.
That said, all dividend payers are not equal, especially now. I view high payout ratios, slowing growth, and ultra-high dividends as bigger risks than they used to be. Stick to the “steady Eddies,” like those we have in our portfolio, with long, stable dividend histories. Use dips as buying opportunities.