Investing Truth: Why Dividends Can Hurt Your Returns! #shorts

追加: 2026-05-26

[00:00:00]As always, there's more to the story.

[00:00:02]I'm Ben Felix, associate portfolio manager at PWL Capital.

[00:00:06]In this episode of Common Sense Investing, I'm going to tell you why chasing dividends might hurt you in the long run.

[00:00:14]Before I start the episode, I do want to let everyone know that I've started a weekly podcast called The Rational Reminder. It's a reality check on sensible investing and financial decision-making for Canadians, co-hosted by my PWL Capital colleague Cameron Passmore.

[00:00:28]If you enjoy my Common Sense Investing videos, I think that you will really like the podcast. I've put links to The Rational Reminder in the description below. The magnitude of capital returned to shareholders in the US market, that is both dividends and share repurchases, averaged about 4.4% of total market cap from 1973 through 2016.

[00:00:48]Dividends were far more prominent in 1973, but buybacks grew steadily over time.

[00:00:55]In recent years, there's been about an equal split between share repurchases and dividends.

[00:01:00]And the total payouts have been near the long-term historical average.