Update (12/31/2022):
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From an email I received recently:
I have a friend that swears dividend stocks are a superior way to go. I tell him otherwise but I can't convince him. Have you written any articles about why dividend stocks do not out outperform the market and the funds that represent the market? Thanks again, yours is the only blog I get email updates on because I look forward to everything you write.
Great question! I haven't written a designated post dealing with that topic specifically. But I've written about how higher yields (in general) may make Sequence Risk worse: See SWR Series 29, 30, 31. The VYM (Vanguard high-div-yield) slightly underperformed the S&P500 in the simulations 2007-2019.
I've also done a ChooseFI episode on this topic: https://www.choosefi.com/learn-more-about-dividend-investing/
Generally, I'm not the one trashing the dividend investors, though. I don't think that dividend investors will beat the market. But I also don't think they consistently underperform either (though in 2020 again, the low-dividend stocks outperformed!). It's more of a crapshoot. You get a higher dividend yield, but your price return is also lower, and likely lower exactly 1-for-1.