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Classical finance theory says dividends shouldn't matter. Recent research confirms this, showing that dividend-paying stocks outperform largely because they happen to also be "value" stocks with traits like stability and profitability.

Instead of focusing on dividends, you can gain more efficiency by targeting factors like value and quality directly. This allows you to invest in a broader range of stocks, increasing diversification and potentially improving outcomes. Remember, dividends have negative tax implications compared to pure capital gains, further eroding their true value to investors.