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There is no difference for optimizing dividends vs. stock value increases due to reinvestment, as for any other company. Employees that can sell shares at any
by Nevermark 2y ago
There is no difference for optimizing dividends vs. stock value increases due to reinvestment, as for any other company.
Employees that can sell shares at any time have the same financial interests as with any other corporation. As much reinvestment as grows value faster than the overall market is how much is best to reinvest.
Distribute the rest to owners to use/invest elsewhere.
- thanksgiving 2y agoIt sounds like you just explained the opposite of what you said. If you can only get the dividends and can never sell your ownership outright, it makes sense to optimize for long term, sustainable growth and profits over short term profits. So, you don't care about stock value increase as you already own your shares. Actually, I'm thinking low share prices compared to dividends are good because it allows you to buy more and earn more. It sounds like this is a much healthier concept overall?
- s1artibartfast 2y agoThey are the same with respect to long term planning. You can take a dividend or sell stock to witdraw profits. Dividends don't have to be sustainable. There are companies that are gutted and liquidated to pay out dividends too.