2 ms·
The point is that the stock value remains in the same place because they distribute part of their earnings to shareholders. On the day of a dividend, the stock
by totalZero 5y ago
The point is that the stock value remains in the same place because they distribute part of their earnings to shareholders. On the day of a dividend, the stock gets discounted by the amount of the dividend. So if you pay out a large dividend and the share price is static over the long term, that’s actually quite good for investors.
(In other words, your earlier comment about bloodsucking profiteers misses the mark a little bit.)