There is a growing trend among investors to put money in places with high dividends. They prefer money now over decades from now. However, the higher dividends come at a cost in the longer term. For Bloomberg, Denitsa Tsekova and Vildana Hajric, with graphics by Armand Emamdjomeh, discuss the trade-offs that make the money-now approach seem less favorable.
The current wave of interest is new enough — and many of the followers young enough — that it has been easy to ignore how the most popular funds have often lagged basic stock indexes and threaten to eat away at long-term returns. Samuel Hartzmark, a professor of finance at Boston College, has researched the…
