3 ms·
Eventually because of profits that go into the next dividend. Otherwise you would just buy each company pre div, sell it a little bit ex div, make tons of free
by ohyes 10y ago
Eventually because of profits that go into the next dividend. Otherwise you would just buy each company pre div, sell it a little bit ex div, make tons of free money.
- ghshephard 10y agoOr, alternatively, if there is no likelihood of future cash flow or profit, each issue of the dividend evaporates a bit more of the stock value, until either dividends are canceled, or the company delists.