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It should be. Logically.

No, there is absolutely no reason why it would be best in all time periods. Logic says otherwise. Just as different groups of stocks (large cap, small cap, international, etc.) do better in different time periods, dividends do better or worse at different times.

Clearly, you do not understand the Safe Withdrawal Rate problem.

Dividends are traceable to earnings, which have grown consistently (after smoothing) over a very long time frame.

Capital appreciation depends on investor whims. It is extremely volatile.

Selling when prices are low is what kills retirement strategies that liquidate shares.

Dividend strategies avoid this problem.

However, if you vary allocations slowly in accordance with valuations (as Benjamin Graham recommended), you can come very close to matching dividend strategies.

Have fun.

John Walter Russell
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