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Dividend Survivors

Dividend Survivors

When we first launched our Income Majors series three years ago, we noted the peculiarity of buying a share for its dividend. In a very literal sense, it is an unproductive use of company profits that could otherwise be used to grow the business and compound the return on equity. Once a board signs off on a payout, it has forfeited the use of that cash to either expand or invest in cost-cutting, the effects of which can be multiplied in coming years.

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