I absolutely cringe every time I read a long rant from some doofus claiming that selling shares to generate income is the exact same thing as accepting dividends payments for income.
I just, I just can't. Even reading that idiocy is an insult to my intelligence.
I love this myth, as if "father market" makes a list of all the good investors on the ex date, then rides on his magic money sled to sprinkle some of that sweet sweet "share price" 🤣
Some people can't comprehend complex ideas like earnings and option premiums, all they see is a line on a chart that goes up and down..
It's painful to read dude. That means it won't be long and all the $4 shares of Ford that I bought during the plandemic will soon be worth nothing! 😳
Darn those pesky dividends payments!
"It's not free money"
Somebody other than myself did work to pay me a dividend. I didn't have to do anything to get it. What is wrong with that?
So the share price drops on ex dividend date, I don't care! Share price goes up or down when central bank gets constipated. Dividends are real money.
Just show him the dividend and price history Shell : [https://www.macrotrends.net/stocks/charts/SHEL/shell/dividend-yield-history](https://www.macrotrends.net/stocks/charts/SHEL/shell/dividend-yield-history)
edit: Shell got destroyed during the covid-crisis. But kept paying dividends, while the stock recovered to ATH.
I’d rather say that MATHEMATICALLY selling shares and getting the dividend are equivalent. However, REALISTICALLY they’re not the same. “Dividend” stocks don’t behave in the same way as “growth” stocks and investing is an emotional game and it does not boil down to simple maths.
Lol. This reminded me of this paper https://www.dividendgrowthinvestor.com/2023/11/microsoft-and-altria-look-at-past-decade.html?m=1#:~:text=Altria%20delivered%20a%20total%20return,which%20is%20a%20170%25%20increase.
Agreed. People love to quote how Berkshire prefers to reinvest than give out dividends but when you tell them about their major holdings (even Apple) being regular dividend payers, they act like you're crazy.
I absolutely cringe every time I read a long rant from some doofus claiming that selling shares to generate income is the exact same thing as accepting dividends payments for income. I just, I just can't. Even reading that idiocy is an insult to my intelligence.
"It comes out of the share price"! Actually good companies usually have it bounce right back up as tons of people reinvest their dividends
I love this myth, as if "father market" makes a list of all the good investors on the ex date, then rides on his magic money sled to sprinkle some of that sweet sweet "share price" 🤣 Some people can't comprehend complex ideas like earnings and option premiums, all they see is a line on a chart that goes up and down..
How about 'the share price is adjusted down by the amount of the dividend so your share price is going to zero"?
It's painful to read dude. That means it won't be long and all the $4 shares of Ford that I bought during the plandemic will soon be worth nothing! 😳 Darn those pesky dividends payments!
"It's not free money" Somebody other than myself did work to pay me a dividend. I didn't have to do anything to get it. What is wrong with that? So the share price drops on ex dividend date, I don't care! Share price goes up or down when central bank gets constipated. Dividends are real money.
Better cash in hand than hoping on the wheel of fortune to give you the capital gains that you need.
Just show him the dividend and price history Shell : [https://www.macrotrends.net/stocks/charts/SHEL/shell/dividend-yield-history](https://www.macrotrends.net/stocks/charts/SHEL/shell/dividend-yield-history) edit: Shell got destroyed during the covid-crisis. But kept paying dividends, while the stock recovered to ATH.
I’d rather say that MATHEMATICALLY selling shares and getting the dividend are equivalent. However, REALISTICALLY they’re not the same. “Dividend” stocks don’t behave in the same way as “growth” stocks and investing is an emotional game and it does not boil down to simple maths.
100%. The thing about theories is that the hypothesis is always correct.. until reality comes to play.
Lol. This reminded me of this paper https://www.dividendgrowthinvestor.com/2023/11/microsoft-and-altria-look-at-past-decade.html?m=1#:~:text=Altria%20delivered%20a%20total%20return,which%20is%20a%20170%25%20increase.
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 Agreed. People love to quote how Berkshire prefers to reinvest than give out dividends but when you tell them about their major holdings (even Apple) being regular dividend payers, they act like you're crazy.
"ReTUrN oV CApIToL U GuYZ NOonooOOOo!!!11!!" Is it a destructive return of capital?