This video is a comprehensive guide to dividend investing, covering topics like understanding dividends, analyzing company finances, and strategies for growth. It stresses the importance of looking beyond just dividends. By exploring other ways companies use their profits, like reinvestment and buying back shares, the video helps broaden your understanding of investing. It also offers considerations for young investors seeking immediate dividends. Overall, it's a valuable resource for anyone looking to understand the truth of dividend investing.

**CORRECTION. 05:58 While it is true 1 stock would own a larger percentage of a business after a buyback, the book value/equity value per share may not follow the same formula. If shares are purchased at a value over the book value, remaining book value will shrink, vice versa. That is why AZO has a negative book value/ equity value. The reason is accounting rules may distort book value, therefore book value itself must always be used with caution. Nevertheless, the intrinsic value may increase, and the share price may continue to increase after a buyback. In the XOM example, the book value increased because the amount that left in dividends and buybacks were still lower than profits generated.

00:00 What is a Dividend?
01:28 Exxon Mobile "Dividend Aristocrat"
03:45 What are Buybacks?
06:13 AutoZone: Share Buyer
08:09 Berkshire Hathaway: Reinvestor & Share Buyer
09:36 Is Dividend = Income?
13:09 Tax
14:51 Bond Income vs Dividend
15:58 Debunking Dividend Growth
17:17 Capital Allocation
19:47 Performance
21:08 Debunking Dividend Stocks
22:32 Professionals' Take
24:04 Young Investors
24:37 Conclusion
25:53 Appendix: AZO Debt Management

Buffett on Dividends:
https://www.businessinsider.com/warre...
https://www.berkshirehathaway.com/let...


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(content: for informational purposes only, not investment advice)

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