Ok. That’s sort of the whole point of investing, so I fail to see t how that is additive to a conversation about dividends.You make money without working.What do you mean?I'd say that if you invest $100K in a company and that company earns $10K, gives you back $5K a year in dividends, then it is a free lunch.If you were invested in a broad-based diversified fund or collection of stocks, then spending only the dividend yield would be perpetual. You would never run out of money. The stock price does drop by the dividend amount so this is not a free lunch. Your spending amount each year could be very choppy and cover a wide range and be dictated by economic conditions and corporate policy not your actual needs. Companies are increasingly performing share buybacks so if you refuse to sell shares, the average dividend yield could drop over time if this trend continues meaning your spending drops as a result.
Statistics: Posted by muffins14 — Fri Feb 16, 2024 1:57 pm — Replies 91 — Views 4899