The Decline Of The Dividend

The importance attributed to dividends has changed over time, with the author of today’s article noting that “In the past, dividends were the only reason investors placed their money in equities. Now, dividends play a much smaller role, for better or worse, in the overall stock market.” One of the biggest factors behind the shrinking importance of dividends? The increase in stock buybacks, as corporations found another way to return money to shareholders. But it’s not the only factor. For more – including what this shift means for dividend strategies – CLICK HERE.