2 ms·
> if the dividend yield is high enough Are you not then still betting that the stock continues to offer dividends / offers them at the same rate?
by deathanatos 9y ago
> if the dividend yield is high enough
Are you not then still betting that the stock continues to offer dividends / offers them at the same rate?
- tomkarlo 9y agoIf you choose a broad enough definition of betting, everything is gambling. But to be more specific, the post I replied to stated that everyone who invests in stocks is betting that their price will go up, which isn't true. There's good stock investments where you know the price of the stock is going to go down to zero, because you have high enough certainty that it will pay out dividends of sufficient value to justify the purchase price. (This would be typical of a "late stage" or "liquidation stage" enterprise.)