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Illustrative Comment To "Dividend Growth Investing: Myths 11-15" By David Van Knapp


Thank you for good continuation. Let me as usual criticize some your points:

Myth #11. Dividend growth investing does not involve analyzing individual stocks

Probably anti-myth coexist: Dividend growth investing (NYSE:DGI) does not work because it involves analyzing individual stocks.

Myth #12. You can replicate a good dividend growth strategy with ETFs.

Why not? David Fish CCC list is based on straight mechanical principles and can be considered as DG index. If you add some limit for market cap a closed end fund can be easily form from CCC list. If an ETF follows the CEF rules it can become DGI-ETF. Actually there are several UK investment trust that can be qualify as DG funds -see . Hopefully DGI-ETF will be created by an US firm as soon as Wall Street recognizes demand in such product and figures out how make it profitable for the firm (BTW, the firm must pay royalties and/or fees to David Fish).

Myth #13. Stocks with high yields have low dividend growth rates, and vice-versa

Statistically it is NOT the myth but it is reality - see picture below and my comment to Myth 15 below.

BTW, there are some shocking facts in this paper - see

Myth #15. Broad statistics are helpful in assessing individual stocks

IMO it is NOT the myth but it is reality. For example, in this article you wrote "A more likely long-term forecast might be that a stock's DGR will level off in the 6% to 7% range at some point in the future." This range actually came from statistical analysis of DGR for US stocks during last 100+ years - see

Of course you have to understand statistics and be not surprise to outliers and almost black swan.

Myth #14. Younger investors should take on more risk, because they have more time to make up losses

Hmmm… I didn't think this way. Chowder and you are right. There are plenty of wise ideas lost in SA comments. IT'd be nice if article author who got 100+ relevant comments make their summary and commenters put their ideas in condensed post (e.g. I really appreciate that Chowder agreed to run SA blog).