> No, investors only have one goal: total returns.
You’re misinformed. There are 3 considerations: dividend yield, capital gain, and security of principle.
> Both are gains. If you hold 100 shares and a company doesn't issue a dividend you can sell 1 share to obtain a 1% dividend. Or you can wait for them to issue a 1% divided and be left with 99% the value. It's a no-op. Same thing. You've failed at basic math here.
Owning cash isn’t the same as owning a business and almost everyone understands that. I’m not sure if you’re really this clueless or you’re trying to gaslight me, either way you’re wrong.
> No. You are strictly wrong. When a dividend is issued the stock goes down by that amount. [1]
> After a stock goes ex-dividend, the share price typically drops by the amount of the dividend paid to reflect the fact that new shareholders are not entitled to that payment.
> strictly
> typically
You don’t seem to understand the subject based on this exchange. Do you realize that’s not a rebuttal to what I said?
> No dividends are less valuable because they offer no flexibility in recognition date.
So if they are less valuable then you understand that some investors would prefer them less, and this is not the same as only caring about total returns?
> In fact, I believe, correct me if I'm wrong, dividends are treated as ordinary income. On the other hand if you sell something you've held for 1 year in lieu you'll get long-term capital gains treatment.
So you do understand that they are different, and investors care about more than total return?
You’re misinformed. There are 3 considerations: dividend yield, capital gain, and security of principle.
> Both are gains. If you hold 100 shares and a company doesn't issue a dividend you can sell 1 share to obtain a 1% dividend. Or you can wait for them to issue a 1% divided and be left with 99% the value. It's a no-op. Same thing. You've failed at basic math here.
Owning cash isn’t the same as owning a business and almost everyone understands that. I’m not sure if you’re really this clueless or you’re trying to gaslight me, either way you’re wrong.
> No. You are strictly wrong. When a dividend is issued the stock goes down by that amount. [1]
> After a stock goes ex-dividend, the share price typically drops by the amount of the dividend paid to reflect the fact that new shareholders are not entitled to that payment.
> strictly
> typically
You don’t seem to understand the subject based on this exchange. Do you realize that’s not a rebuttal to what I said?
> No dividends are less valuable because they offer no flexibility in recognition date.
So if they are less valuable then you understand that some investors would prefer them less, and this is not the same as only caring about total returns?
> In fact, I believe, correct me if I'm wrong, dividends are treated as ordinary income. On the other hand if you sell something you've held for 1 year in lieu you'll get long-term capital gains treatment.
So you do understand that they are different, and investors care about more than total return?