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> When I invest it’s usually because I think “I like this dividend yield.” That's a pretty sophomoric way to look at investing. Many companies provide no divid
by speedplane 7y ago
> When I invest it’s usually because I think “I like this dividend yield.”
That's a pretty sophomoric way to look at investing. Many companies provide no dividends. Many give large dividends, but their stock value decreases.
Obviously, when considering an investment, one considers both the dividends and potential growth of the underlying asset together.
- erpellan 7y agoBoring. The word is boring. Boring companies whose stock prices do nothing for 30 years but gently drift up and down with the market (or not), steadily yielding 5% dividends year after year. Usually they sell things like toilet paper, soap, electricity or other boring everyday things. When it comes to long term investing, boring is good.
- conistonwater 7y agoThis analysis is definitely wrong, it's discussed in textbooks too. You need to seriously, properly consider the risk of the investment, and if your model of the stock price is that it gently drifts with the market while yielding 5%, then that's just wishful thinking on your part.
- speedplane 7y ago> Boring companies whose stock prices do nothing for 30 years but gently drift up and down with the market (or not), steadily yielding 5% dividends year after year. ... When it comes to long term investing, boring is good. The S&P 500 has pretty consistently had yields of 10-15% over the last 100 years. It makes more sense to invest in a "boring" ETF that follows the market making 10% than a "boring" stock that yields 5%.
- saaaaaam 7y agoIn this specific situation one of the clearly stated aims of Hipgnosis is to return income through dividends. https://www.hipgnosissongs.com/investment-objective-and-policy https://www.hipgnosissongs.com/investment-objective-and-poli...