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Why on earth would you think dividends are a terrible idea?

• echelon 4y ago
  1. Theoretically speaking, this means the company has nowhere else better to put that cash [1]. Rather than reinvesting back into itself to fuel growth, dividends return company proceeds to investors. It's a sign of slow or no growth. 2. As an investor, you can't control when and how you're taxed. Dividends are taxable when they are paid out. A company stock buyback, on the other hand, would increase the value of your shares and let you sell when you're ready. [1] Discounting stocks like REITs which are required to return profit in the form of dividends.
  • geysersam 4y ago
    > Nowhere better to put their money Same could be said about stock buybacks. In principle they're the same, only one has better tax characteristics. > Rather than investing into itself. Why would a mature business continue to invest into itself perpetually? What's in it for the investor?
  • boppo1 4y ago
    This content of your post is exactly what the article is addressing.