Profit from the Profit Part 2

Profit from the Profit Part 2

From The Dividend Cafe by The Bahnsen Group

August 28, 2026 · 27 min

About this episode

David Bahnsen discusses dividend growth investing and addresses common critiques in the final Friday Dividend Cafe of August.

Today's Post - https://bahnsen.co/3UKOOfH David Bahnsen hosts the final Friday Dividend Cafe of August as a part two discussion tied to his new book, "Profit for the Profit," outlining the philosophy and application of dividend growth investing and responding to common critiques. He argues investors should seek returns from the underlying profit-making enterprise rather than sentiment-driven momentum, and that dividend growth helps focus on individual company profits and reduces emotional extremes. He addresses five objections: buybacks as superior capital return (unreliable, often suspended, and frequently offset by share issuance); dividends as tax-inefficient (many accounts aren’t taxable, and dividends can improve behavior versus large embedded gains); dividends making companies “poorer” (stewardship and reinvestment choice matter); Berkshire not paying dividends (it receives dividends as a holding company); and dividends being only for retirees (starting earlier captures yield-on-cost compounding). 00:00 Welcome and Book Launch 03:08 Why Dividend Growth Matters 06:59 Common Critiques Overview 08:35 Buybacks Versus Dividends 13:17 Dividends and Taxes 15:32 Does Paying…

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