Overview

We are on the verge of a major paradigm shift for investors in the U.S. stock market. Dividend-focused stock investing has been receding in popularity for more than three decades in the U.S.; once the dominant investment style, it is now a boutique approach. That is about to change. The Ownership Dividend explains how and why the stock market drifted away from a mostly cash-based returns system to one almost completely driven by near-term share price movements. It details why the exceptional forces behind that shift—notably the 40-year drop in interest rates and the rise of buybacks—are now substantially exhausted. As a result, the U.S. market is poised for a return to the more typical business-like relationships observed in the private sector and in other mature markets around the world. While many market participants have profited from and become used to the way things have been in recent decades, savvy individual investors, financial advisors, and even institutional portfolio managers will want to position themselves to benefit from the reversion to cash-based investment relationships in the years ahead. This is a must-read book for financial advisors, institutional consultants, as well as engaged individual investors.

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9781032270524

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Reviews

“Precious few books combine practical advice for investors with deep insights into academic finance theory and political economy. The Ownership Dividend is one of them. Daniel Peris offers a well-researched, contrarian history of dividend investing, puncturing a number of widely-held myths along the way—an important contribution to multiple fields of study.” Julius Krein, Editor, American Affairs “Daniel Peris powerfully combines a practitioner's experience with extraordinary analytical perspective on the evolution and likely future course of dividends as a determinant of investment returns. Investors and money managers owe it to themselves to challenge their assumptions by very carefully studying every page of this book.” Martin Fridson, Chief Investment Officer, Lehmann Livian Fridson Advisors, LLC “Peris presents not only a comprehensive theory for understanding the art of investing under conditions of uncertainty, but he also makes the case for cashflow-based investing, which he argues compellingly will come increasingly back into favor in the years to come. His contributions to the field of dividend-based investing should be made mandatory study for financial professionals and novices alike.” Demetri Kofinas, Hidden Forces podcast “The media and Wall Street are obsessed with market values, and that obsession has led the investing public to downgrade the importance of dividends. This is a mistake! Dividends are the more stable and more secure source of investment returns. Furthermore, paying dividends forces corporations to be more thoughtful about their capital allocation decisions. Daniel Peris has written an interesting and important book. Wall Street, corporate executives, and the investing public should pay attention.” James P. Garland, Retired President, The Jeffrey Company “Daniel Peris takes you deep into the history of dividend investing. Dividends were once the largest component of investment returns; after 1980 that slowly ceased to be true. Now the market appears to be on the verge of another major transition. This book explains the factors driving that change.” Edward F. McQuarrie, Santa Clara University “A student of financial history, Peris presents a compelling case for an investment paradigm shift back to corporations sharing profits with company owners in the form of cash dividends.” Christopher M. D'Agnes, Hamlin Capital Management “The Ownership Dividend is a love letter to dividends from an older, wiser lover, who recognizes not the surface flash of the market, but the deeper beauty of investing in the businesses that comprise it.” Jon Lukomnik, author of Moving Beyond Modern Portfolio Theory: Investing That Matters and host of the Outside In with Jon Lukomnik podcast

Author Information

Daniel Peris oversees dividend-focused portfolios for Federated Hermes in Pittsburgh. Initially trained as a historian, he is the author of three books on investing as well as a study of the former Soviet Union.

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