Dividends are, at best, irrelevant. When dividends are paid the stock price drops in exact lock step to the amount paid per share, otherwise there is an arbitrage opportunity.
Other downsides are dividends are an immediate tax event unlike capital gains which can be deferred until you're retired and thus in a lower income bracket. It also enjoys a 50% discount if held for at least a year.
Even fully franked dividends aren't a free lunch as it just means the company (that you own part of) paid tax instead albeit at a lower rate than you might.
Finally, companies paying high dividends are an indicator that they have no room to grow and therefore have nothing better to do with their capital.
Back to the specific company you mentioned. How did its total returns compare to an index? Are you claiming it will exceed returns of the index in the future? On what the frame?
Dividends are, at best, irrelevant. When dividends are paid the stock price drops in exact lock step to the amount paid per share, otherwise there is an arbitrage opportunity.
Other downsides are dividends are an immediate tax event unlike capital gains which can be deferred until you're retired and thus in a lower income bracket. It also enjoys a 50% discount if held for at least a year.
Even fully franked dividends aren't a free lunch as it just means the company (that you own part of) paid tax instead albeit at a lower rate than you might.
Finally, companies paying high dividends are an indicator that they have no room to grow and therefore have nothing better to do with their capital.
Back to the specific company you mentioned. How did its total returns compare to an index? Are you claiming it will exceed returns of the index in the future? On what the frame?
And? What actions would you take based on this data and why?