Dividend Myths That Distort Markets (w/ Sam Hartzmark) | #628

Today’s guest is Samuel Hartzmark, a finance professor at Boston College. In today’s episode, Sam explores why dividends are so often misunderstood by investors. He explains the “free dividends fallacy” and how it can lead to inflated valuations and price dislocations. He also examines the tradeoffs between dividends and buybacks and how payout policies influence investor behavior. To close, Sam briefly touches on his research on prediction markets and ESG.