Andrew Hallam and Dividend Paying Stocks

I know that many people who read this blog also like Andrew Hallam who writes about expat personal finance and investing. The other day someone who had read, The Wealthy English Teacher: Teach, Travel, and Secure Your Financial Future and had checked out the Dividend Monk’s site wondered why Hallam only invests in index funds and not dividend paying stocks and Hallam was kind enough to message me with his answer:

“Great topic for discussion. I don’t dislike dividend paying stocks. But the average person won’t beat the market by selecting his or her own equities. Beating the market over an investment lifetime is extremely hard. So it’s a lot easier for me to suggest a way for people to match market returns. By doing so, they will outperform the average professional investor, after fees. That includes most fund managers, most hedge fund managers, and most pension fund managers. Of course, we have reams of data to prove that.”

My reader also found a couple of helpful articles over on Andrew Hallam’s site:

Can you Beat the Market with Dividend Paying Stocks?

Why I would not Buy a Popular Dividend Paying Stock

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