Karim Rahemtulla, Co-Founder, Monument Traders Alliance Dear Reader, Warren Buffett built his fortune on dividend stocks. Berkshire never paid one. That is not a contradiction. It is a lesson. Buffett spent decades buying companies that paid reliable, growing dividends. Coca-Cola. American Express. Wells Fargo. He collected billions in dividend checks while the rest of Wall Street was busy chasing buybacks and earnings-per-share tricks. Earnings per share is a company's total profit divided by the number of shares in existence - the number every analyst watches to judge whether a company is growing. Berkshire paid a dividend exactly once. In 1967. Buffett has joked he must have been in the bathroom when that decision was made. He never paid another one. Because Buffett believed he could reinvest that cash better than any shareholder could. And for sixty years, he was right. Here is the part most investors miss. That logic only works if you can compound money at Buffett's rate. Most of us cannot. For the rest of us, a dividend check is the most honest thing a company can do with its profits. It lands in your account. You did not have to sell anything. You did not have to trust that management allocated capital wisely. You just got paid. The Buyback Illusion Big tech loves buybacks. Apple announced a $100 billion repurchase program. Alphabet authorized $70 billion. When a company buys back its own shares, it reduces the number of shares outstanding-the total number of shares in the market. Fewer shares mean earnings per share go up. The stock looks cheaper on paper. Management announces they are returning value to shareholders. But look at your account. Did anything show up? IBM ran one of the most aggressive buyback programs in history for nearly a decade. They kept reducing shares outstanding so aggressively that earnings per share looked great year after year. The stock went nowhere for ten years. Shareholders got financial engineering. They did not get paid. A dividend is different. A dividend is a company writing you a check. Quarterly. Into your account. Whether the market is up, down, or sideways. | 
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