The Meb Faber Show: “Sam Hartzmark: The Dividend Mistake Most Investors Still Make”
The Meb Faber Show: “Sam Hartzmark: The Dividend Mistake Most Investors Still Make”
Today’s guest is Samuel Hartzmark, a finance professor at Boston College.
In today’s episode, Sam explores why dividends are so often misunderstood by investors. He explains the “free dividends fallacy” and how it can lead to inflated valuations and price dislocations. He also examines the tradeoffs between dividends and buybacks and how payout policies influence investor behavior.
To close, Sam briefly touches on his research on prediction markets and ESG.
To see links or read the transcript of the episode, visit us at: https://www.themebfabershow.com/episo…
(0:00) Starts
(1:59) Sam Hartzmark on dividend misconceptions
(15:24) Mutual funds juicing dividend yields
(27:26) Buybacks, shareholder yield, and reinvesting dividends
(39:57) Tax optimization
(43:40) Importance of total return
(52:26) Divestment, prediction markets, and memorable investments
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Sponsor: This episode is sponsored by Cambria. Visit www.cambriafunds.com/351 to take the next step in innovative, tax-savvy investing today.
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Have questions? Reach out to us any time at info@cambriainvestments.com.
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Website: http://mebfaber.com/
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