dividends Archive

  • Dividends decrease the total value of a company. Dividends are kind of like tearing off a small chunk of the firm and giving it to investors. Here's a good rule of thumb to keep in mind. Mature companies hoarding cash without a dividend is not a particularly good sign; and a growth company paying large dividends is definitely a bad sign in most cases.

    Dividends – Good or Bad?

    Posted on October 28, 2011 | No Comments
    Dividends decrease the total value of a company. Dividends are kind of like tearing off a small chunk of the firm and giving it to investors. Here's a good rule of thumb to keep in mind. Mature companies hoarding cash without a dividend is not a particularly good sign; and a growth company paying large dividends is definitely a bad sign in most cases.

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  • The famous $3.00 dividend of Microsoft saw the stock price at $30 on Monday and $27 on Tuesday. The stock didn’t go down. The company gave back to stockholders part of their own money. It was capital distribution. Furthermore the investor had to pay tax of 15%. Capital distributions should not be taxed like this. Go tell the IRS.

    The Fallacy of Dividends 2

    Posted on December 28, 2010 | No Comments
    The famous $3.00 dividend of Microsoft saw the stock price at $30 on Monday and $27 on Tuesday. The stock didn’t go down. The company gave back to stockholders part of their own money. It was capital distribution. Furthermore the investor had to pay tax of 15%. Capital distributions should not be taxed like this. Go tell the IRS.

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  • A stock holding represents ownership in a company. As a stockholder, you are entitled to a share of the company’s profits. Some companies pay out these profits in dividends, while others reinvest the money in their firm to increase profits in the future. Either way, stock prices tend to increase as companies improve their profitability.

    Introduction to Stocks – Video

    Posted on November 22, 2010 | 1 Comment
    A stock holding represents ownership in a company. As a stockholder, you are entitled to a share of the company’s profits. Some companies pay out these profits in dividends, while others reinvest the money in their firm to increase profits in the future. Either way, stock prices tend to increase as companies improve their profitability.

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  • When a bear market that collapses 20, 30, 40% or more ALL STOCKS go down and in that bear market many “good” companies reduce their dividends. Some companies even borrow money to pay a dividend. How dumb is that?

    The Fallacy of Dividends

    Posted on August 7, 2010 | No Comments
    When a bear market that collapses 20, 30, 40% or more ALL STOCKS go down and in that bear market many “good” companies reduce their dividends. Some companies even borrow money to pay a dividend. How dumb is that?

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