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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 12:10 pm to
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
Posted by tigerfoot
Alexandria
Member since Sep 2006
56690 posts
Posted on 4/18/24 at 12:34 pm to
So I got more money

The market cap won’t go up! Ok maybe 5%. But it coulda been more!

Are you sure you have a point
Posted by Big Scrub TX
Member since Dec 2013
33741 posts
Posted on 4/18/24 at 5:11 pm to
quote:

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.
Not sure what point you're actually trying to make. If the company is generating cash earnings and distributing them as dividends, then that is return ON capital not OF capital. I don't care what the market cap is. It's still true value generated and conveyed.
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