(Shrug) We argue about dividend stocks all the time in this forum. It's my belief that dividend stocks have about the same total return as the rest; that a dollar is a dollar, and a dollar in dividends is no better or worse than a dollar of capital appreciation. (Under current tax structure, worse).
But, yes, to my surprise Siegel is clearly on the other side, and apparently agrees with Benjamin Graham that "a dollar of earnings is worth more to the stockholder if paid him in dividends."
In Stocks for the Long Run 5/E even a mention of the Modigliani-Miller theorem is conspicuously absent. I really think if he's going to claim superiority for dividend stocks he really ought to explain why the theorem doesn't apply.
But, yes, to my surprise Siegel is clearly on the other side, and apparently agrees with Benjamin Graham that "a dollar of earnings is worth more to the stockholder if paid him in dividends."
In Stocks for the Long Run 5/E even a mention of the Modigliani-Miller theorem is conspicuously absent. I really think if he's going to claim superiority for dividend stocks he really ought to explain why the theorem doesn't apply.
Statistics: Posted by nisiprius — Wed Sep 04, 2024 9:05 pm — Replies 8 — Views 468