ABSTRACT
Some words achieve the status of a shibboleth or a talisman. They can be used as a magic wand to settle any controversy. “Dividend” is an example of such a word. Time was that no “conservative,” “prudent” investor would have tolerated stocks that paid no dividends-until Magee conducted a rational study comparing dividend-paying with non-dividend stocks and determined that over the long term the net return on the two groups was little different. This is a story not just about the term “dividends,” but about the nature of a talisman.
