> uh... no my dude. Whether a company buys back the shares, or issues a cash dividend, warrants, or someone else is willing to pay you more for the same shares, you've obtained what's called a "total return."
You seem to be unaware that different investors have different investment goals.
> What any investor is looking for is a total return, and it doesn't matter in what form.
Yeah, no. Some investors want dividends, some want gains, some are more concerned with security of principle, some optimize for total return. This is taught in finance 101.
> Inflation only sets the benchmark rate for total return.
Inflation creates a margin rate of profit that must be met or a business loses money.
> When a company issues a dividend its stock price drops by the decrease in net asset value of the company once the dividend is issued.
It depends. Sometimes the price goes up because they have shown that they are in a position for the owners to take profit. Sometimes it goes down because shareholders want to reinvest their capital elsewhere and its timely to do this immediately after dividend receipt (because you’re not waiting for the next dividend).
> The difference between an unrealized gain and a dividend is the difference between a "realized" and a "mark-to-market" gain. They have different profiles, and different benefits. For instance, a mark-to-market gain can be rolled forward into different tax years where as a realized gain must be attributed to the current tax year.
I’m glad you understand this. Now based on this, can you see why some investors would prefer dividends and some would prefer capital gains?
> Please, for the love of stocks, take an ECON class. I'm not a complementary tutor, and you're so far off the reservation it's hard to even know how to reign you in.
Really now, this is rich. If you think my perspective is that outlandish then you truly have not studied this to any great extent.
You seem to be unaware that different investors have different investment goals.
> What any investor is looking for is a total return, and it doesn't matter in what form.
Yeah, no. Some investors want dividends, some want gains, some are more concerned with security of principle, some optimize for total return. This is taught in finance 101.
> Inflation only sets the benchmark rate for total return.
Inflation creates a margin rate of profit that must be met or a business loses money.
> When a company issues a dividend its stock price drops by the decrease in net asset value of the company once the dividend is issued.
It depends. Sometimes the price goes up because they have shown that they are in a position for the owners to take profit. Sometimes it goes down because shareholders want to reinvest their capital elsewhere and its timely to do this immediately after dividend receipt (because you’re not waiting for the next dividend).
> The difference between an unrealized gain and a dividend is the difference between a "realized" and a "mark-to-market" gain. They have different profiles, and different benefits. For instance, a mark-to-market gain can be rolled forward into different tax years where as a realized gain must be attributed to the current tax year.
I’m glad you understand this. Now based on this, can you see why some investors would prefer dividends and some would prefer capital gains?
> Please, for the love of stocks, take an ECON class. I'm not a complementary tutor, and you're so far off the reservation it's hard to even know how to reign you in.
Really now, this is rich. If you think my perspective is that outlandish then you truly have not studied this to any great extent.