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re: Some common myths about the markets that are untrue and/or 99% do not know

Posted on 4/18/24 at 11:55 am to
Posted by tigerfoot
Alexandria
Member since Sep 2006
56685 posts
Posted on 4/18/24 at 11:55 am to
quote:

What does that mean? Why would I reinvest my dividends in the company?
so I can have more shares and more dividends and more shares and more dividends
Posted by Saunson69
Member since May 2023
2015 posts
Posted on 4/18/24 at 12:10 pm to
Not theoretically possible. Company gives 2% dividend, market cap lowers by 2%. If it does go up 5% after a dividend payment, then it theoretically would've gone up 7% without dividends. All the same. Dividends aren't free money. No such thing as free money.
This post was edited on 4/18/24 at 12:11 pm
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