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WisdomTree LargeCap Dividend Fund (ETF) |
dividends are irrelevant for the following reason.
a) a noble prize was awarded to merton miller, who came up with this
maxim
b) if a company will issue dividends, it could just as well keep that
money and invest on its growth and/or expansion, which long term
compensates for the issuance of dividends. reinvesting the dividends
makes this all the more obvious. why reinvest [post-tax] if the
company can do it for you? when companies grow too big they no longer
know how to invest in growth [or do not want to]; when they sense
weakness in the demand for their stock they may also choose to issue
dividends; but this is hogwash long term.
> However, DIA is a better fund because it is more diversified, and
> hence less likely to suffer from sectors downturns, such as the
> financials and housing at the moment. Plus DIA yields a nice 2.1%,
> which over time (33.5 years to be exact) will by itself double your
> investment.