17 Silent Dividend Stocks For Long-Term Growth

Dividend growth investing has grown in popularity. It almost seems magical. Coca-Cola, for example, has raised its dividend every year for the past 53 years. Here is a dividend machine that keeps paying you more and more, year after year. Who can not love that?
Well, I will mince no words here. Cash dividends are terrible. They force you to share your wealth with the IRS, diminishing your after-tax net return, which is what counts. Cash dividends are toxic to your financial well-being.
In a previous article, I laid out five key reasons why stocks with lower dividend yields make better long term investments. Please take a moment to review those reasons now. In this article, I will go one step further to argue why the long-term investor should strongly consider investing in companies that generate lots of cash flows from operations, but choose not to pay out cash dividends.
Costs Matters
The overarching reality is simple: Gross returns in the financial markets minus the costs of financial intermediation equal the net returns actually delivered to investors. Although truly staggering amounts of investment literature have been devoted to the widely understood EMH (the efficient market hypothesis), precious little has been devoted to what I call the CMH (the cost matters hypothesis). To explain the dire odds that investors face in their quest to beat the market, however, we don't need the EMH; we need only the CMH. No matter how efficient or inefficient markets may be,... Read more