4 ms·

So, the business then has the choice to use last year's profits to keep the business afloat or pay investors. Seems like an easy choice unless your only motivat

So, the business then has the choice to use last year's profits to keep the business afloat or pay investors. Seems like an easy choice unless your only motivation is lining investor pockets.

chrisseaton 6y ago
> lining investor pockets Investors are often normal people like you and me, using dividends and the sale of shares to put food on their families' tables.
- elric 6y ago
  Indeed. The fallacy that all investors are all fat cats, swimming in money is pretty galling. When interest rates on savings accounts dropped, many regular folks took some of their savings and put into dividend paying companies. I'm sure most of them are aware that this is an investment and isn't without risk. I'm certainly not advocating for companies to pay out dividends no matter what. But the lack of nuance bothers me. Not all dividend paying companies are greedy, and not all dividend investors are wealthy.
- calcifer 6y ago
  I've never once met a person who would otherwise go hungry if they didn't get dividends, have you? What you really mean is those "normal people" would have to sell their third car or maybe rent out their summer home without that dividend, which is just fine by me.
  - 1123581321 6y ago
    I know a bunch of retirees who live modestly off of dividend income, couldn’t afford a significant cut and couldn’t easily return to work. I don’t think you have broad enough experience to assume no one earns a few thousand a month from dividends and needs most of it to help pay bills.
  - strictnein 6y ago
    A semi-common retirement setup is to buy relatively stable stocks that have good dividends and supply you with a 4-6% annual return.
  - chrisseaton 6y ago
    > I've never once met a person who would otherwise go hungry if they didn't get dividends, have you? Many pension funds pay pensions by taking a dividend from investments.
  - deleted 6y ago
    [deleted]
  - tick_tock_tick 6y ago
    If pensions stop paying tons of people will go hungry. What do you think backs these massive programs?

So, the business then has the choice to use last year's profits to keep the business afloat or pay investors. Seems like an easy choice unless your only motivation is lining investor pockets.

chrisseaton 6y ago

> lining investor pockets Investors are often normal people like you and me, using dividends and the sale of shares to put food on their families' tables.

elric 6y ago
Indeed. The fallacy that all investors are all fat cats, swimming in money is pretty galling. When interest rates on savings accounts dropped, many regular folks took some of their savings and put into dividend paying companies. I'm sure most of them are aware that this is an investment and isn't without risk. I'm certainly not advocating for companies to pay out dividends no matter what. But the lack of nuance bothers me. Not all dividend paying companies are greedy, and not all dividend investors are wealthy.
calcifer 6y ago
I've never once met a person who would otherwise go hungry if they didn't get dividends, have you? What you really mean is those "normal people" would have to sell their third car or maybe rent out their summer home without that dividend, which is just fine by me.
- 1123581321 6y ago
  I know a bunch of retirees who live modestly off of dividend income, couldn’t afford a significant cut and couldn’t easily return to work. I don’t think you have broad enough experience to assume no one earns a few thousand a month from dividends and needs most of it to help pay bills.
- strictnein 6y ago
  A semi-common retirement setup is to buy relatively stable stocks that have good dividends and supply you with a 4-6% annual return.
- chrisseaton 6y ago
  > I've never once met a person who would otherwise go hungry if they didn't get dividends, have you? Many pension funds pay pensions by taking a dividend from investments.
- deleted 6y ago
  [deleted]
- tick_tock_tick 6y ago
  If pensions stop paying tons of people will go hungry. What do you think backs these massive programs?