The Alternative Investor

The Biggest Mistakes Dividend Investors Make

March 18, 2026·10 min
Episode Description from the Publisher

In this episode, Brad Johnson breaks down the biggest mistakes dividend investors make and why chasing high yield can quietly hurt long-term results. He explains what dividend investors should actually focus on, how to identify stronger businesses with staying power, and why dividend growth matters far more than the highest starting yield. Brad also shares how Evergreen Capital thinks about pairing dividend growth stocks with alternative income-producing assets for high-net-worth investors.Book a Callhttps://zpr.io/W6JaycaP8EeT Evergreen Capitalinfo@evergreencap.comConnect with Brad Johnsonhttps://www.linkedin.com/in/bradleyjohnson/Key topics:• Why the goal of dividend investing is lasting income, not just a high starting yield• How yield traps can pull investors into weak businesses with unsustainable payouts• What to look for in quality dividend growth stocks• Why Texas Pacific Land Trust is a useful case study in dividend growth investing• How yield on cost compounds over time• The behavioral benefits of owning cash-flowing investments• Why over-concentrating in REITs can create portfolio risk• How payout ratios help reveal whether a dividend is sustainable• The tradeoff between total return investing and dividend-focused investing• Why high-net-worth investors often prefer income-producing portfoliosTimestamps:00:00 - Introduction to Dividend Investing00:21 - The Goal of Dividend Investing00:39 - Avoiding Yield Traps01:40 - Finding Quality Dividend Growth Stocks02:34 - Case Study: Texas Pacific Land Trust (TPL)03:51 - The Power of Yield on Cost04:31 - Behavioral Benefits of Dividends05:20 - Risks of Over-Concentrating in REITs06:08 - Understanding Payout Ratios07:13 - Total Return vs Dividend Strategy08:04 - Achieving Market Returns with Quality Growers09:03 - Strategy for High-Net-Worth Investors Hosted on Acast. See acast.com/privacy for more information.

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