/biz/ - Business & Finance

Dividends are irrelevant in an idealized market — one with no mispricings that you can reliably exploit, no taxes, no transaction costs:
https://www.youtube.com/watch?v=f5j9v9dfinQ

>The researchers are wrong
That's very unlikely. If you proved that Miller and Modigliani's famous research on dividends was wrong on its own terms, you'd quickly become a celebrated intellectual.

>But real markets aren't ideal
You're right. Keep reading this.

>But there are mispricings I can reliably exploit
Then make money by exploiting your special knowledge of stock valuations. Don't worry about dividends per se.

>But tax treatment of dividends is significant for me
Fair enough. Seek or avoid dividends based on your tax situation (but as little as possible, because it's valuable for your portfolio to be broadly diversified).

>But transaction costs are high for this stock (for example, it's not publicly traded)
Fair enough. Dividend policy might matter in your case.

>But pushing the "sell" button is so much work
No it's not. If you can handle buying securities, transferring money to and from your bank account, and reading an investing forum, then you can handle periodically selling shares.

>But dividends prove that the company is making genuine profits, that its management actually works for the shareholders' benefit, etc. etc.
Every investor can see that. So either it's already reflected in the price or it's a special case of "but there are mispricings I can reliably exploit."

>But some stocks have steady dividends, whereas the price at which I can sell shares fluctuates and is sometimes very low
Every investor can see that. So either it's already reflected in the price or it's a special case of "but there are mispricings I can reliably exploit."

>But I just like dividends
That's fine. But some people reading this thread want to maximize their investment returns and would benefit from knowing about the science.

>>56538416
How? By only owning a small amount?

>>56513294
>anon, you're saying you want to buy back the stock you panic-sold last week... at a higher price?

>>55976139

>>55792814
>tfw PC master race will probably have to wait until 2027 as usual

>>54247717
The customary tip for your broker is 20%.

>>54119079
do you do it for the thrill

>>53972779

>>53956041
That's not going to impress your female broker.

>>53850522
>keep chipping away at my c.c debt
boomer-san. are you physically incapable of staying out of debt or something. I swear you've ""paid off"" your cc debts like 2 or 3 times now.

there is literally no point in investments if you can't pay off ALL your high interest debt, this is gigacrab market you are not gonna get 20% returns or whatever your cc interest rate is.

>>53837895
I bet I've been doing this for a lot longer than you
seriously why do you have to pretend im a permabear?

im bearish NOW because thats the correct play

sheeeesh kid

>>53833421
>gov is faking the CPI to be too HIGH
uhh did you miss the last 20+ years when they were faking it to be too low