Investing Insights
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Dividend Investing: How to Find the Right Balance Between Income and Growth

Dela

There's just something about dividends. The popular investing strategy attracts retirees and other investors who need regular cash payouts, as well as those who like the tangible return dividends represent, even if they are reinvesting those distributions back into their portfolio. But what are the tradeoffs, and are they worth it? It depends on who you ask.

From the pages of the Q2 2026 issue of Morningstar Magazine, several specialists argue against chasing higher yield. Instead, they encourage investors to balance dividends and total return. Jerry Kerns, who's the editor in chief, joins Investing Insights to discuss the magazine’s spotlight. 

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On this episode:

00:00:00 Welcome 

00:01:35 What dividend investing is and its appeal 

00:03:55 Yield chasing trade-offs and dividend cut signals 

00:07:47 Why consider buyback yield alongside dividend yield 

00:09:44 Dividend stocks Morningstar analysts find attractive 

00:10:45 Gold-rated funds and insights into the strategies 

00:12:00 How income investors can strike the right balance

 

Watch more from Morningstar:

Are Mutual Funds Becoming Obsolete? 

https://www.morningstar.com/podcasts/investing-insights/are-mutual-funds-becoming-obsolete-2

 

Brace Your Portfolio for Mega-IPOs

https://www.morningstar.com/podcasts/investing-insights/brace-your-portfolio-mega-ipos-2

 

The Portfolio That Has Been Beating the Classic 60/40, and Why It Matters for You https://www.morningstar.com/podcasts/investing-insights/portfolio-that-has-been-beating-classic-6040-why-it-matters-you-2

 

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