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This is what dividends and other similar instruments (e.g. stock buybacks) are is suppose to help massage. IE growth is not 10% its 5%, but we are issuing x add
by no_wizard 4y ago
This is what dividends and other similar instruments (e.g. stock buybacks) are is suppose to help massage. IE growth is not 10% its 5%, but we are issuing x additional dividends per share or we're buying back x amount of stock and such. At least, in theory functional market capitalism.
In practice, I agree with you, even when a company is treating investors well via dividends they still get hammered on "slow" growth.
Lets be clear here though, Apple is not contracting in their size, they're simply just not growing at the same gangbuster rates they have been for over a decade. Can't last forever
- vanilla_nut 4y agoInterestingly, Apple has such an enormous cash hoard (tens of billions, iirc?) that they could one day announce that they will no longer prioritize growth since it doesn’t make sense at their size… and merely dedicate to a reasonable dividend instead. Bam, suddenly their stock price soars even more, finance folks hail the move, and other companies rush to mimic it (to lesser success).
- bequanna 4y agoDividends are subject to double taxation and typically avoided. In lieu of dividends, you now see more stock repurchase plans.
- no_wizard 4y agoSame idea though. Edited for clarification.