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Yes. I was a bit ambiguous. I meant that the value of Apple stock that Fidelity owned would go down, not that Fidelity's own stock would drop in price.
by gwright 15y ago
Yes. I was a bit ambiguous. I meant that the value of Apple stock that Fidelity owned would go down, not that Fidelity's own stock would drop in price.
- joshu 15y agoI'm not sure what your point is? The Fidelity fund would go up in value by the dividend. They could just buy more AAPL...
- gwright 15y agoThat is exactly my point. The people saying that a dividend is important seem to think that it is 'found money'. My point is that it is really just converting one asset into another (stock to cash). Another way to convert stock to cash is to sell it. I realize that there are tax considerations though that make this all a bit more complicated.