4 ms·
You can sell X% of your stock every year and pretend it’s a X% dividend. It’s the same thing. It’s not like you get any voting rights.
by pb7 3y ago
You can sell X% of your stock every year and pretend it’s a X% dividend. It’s the same thing. It’s not like you get any voting rights.
- oblio 3y agoBut at the end of the day I'd be left with no stock. Dividends could be paid out indefinitely as long as the company is profitable.
- pb7 3y agoNo, you wouldn’t because the stock price would keep going up so you would sell less and less each time and when the price got too high, the stock would do a split. Every time a dividend is paid out, the stock price drops by an identical amount. It’s the same thing as selling. This wouldn’t be a problem unless you have BRK.A, for the other 99.99999% of stocks it’s fine. Do the math yourself and see.