Are Dividends Irrelevant?

Dividends are not irrelevant to total return; they are just one component of it.

Economists argue that investors can replicate dividends through portfolio sales, but this might lead to unwanted tax events.

Dividends offer stability and psychological benefits, making them valuable for income-focused investors.

Dividends provide a behavioural anchor and allow income without selling, which can be crucial in market downturns.