Andy Kessler and Dividend Stocks are Great for Shareholders

I recently came across [an] article, succinctly titled “I Hate Dividends,” by former venture capital fund manager and tech analyst Andy Kessler about why he hates dividend stocks. The article is from 2002 but was republished because of Apple Inc.’s (AAPL) decision to start paying a dividend. He makes it clear that he absolutely hates dividend paying stocks, thinks they are terrible investments, and that everyone should stay away from them.

Since we manage a dividend stock portfolio, I obviously strongly disagree with him on many of his points. Let’s start with his first point that can be proven to be patently untrue. He says that dividend paying stocks are a terrible investment. I have never come across a study showing that investing in a large basket of high dividend paying stocks was not a successful strategy.

Source: Value Walk

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