Are dividend streams giving investors a false sense of security?

Do not insist on cash handouts

Companies listed on the UK market have a long tradition of paying dividends to shareholders.

The accepted wisdom is that if you receive a dividend yield from a stock then you are getting a steady and predictable drip feed of value each year, regardless of whether the executive management has spent large sums of money on dubious acquisitions, entering new markets or buying expensive equipment and new technology. The share price will go up and down, but the dividends keep rolling in. But could focusing on the dividend stream be giving investors a false sense of security? Might it blind them to the possibility that management have been wasting money for years? UK dividends hi...