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How Dividends Can Cost You Money - Forbes
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(03-29-2017, 02:28 AM)Vincenzo Wrote: I'm interested in hearing reactions to this Forbes article, "How Dividends Can Cost You Money".

https://www.forbes.com/sites/alexverkhiv...-you-money
The article while mathematically correct doesn't account for the very large emotional side of investing. For example their passage 

"In other words, if an investor buys two stocks at $5, they view the stocks differently if one goes to a price of $7 with no dividend and one goes to a price of $6 with a dollar dividend. Income seeking investors prefer the latter, even though they receive the same amount of total value. Hartzmark and Solomon call this mistake the free dividend fallacy –


all true except one must know when to sell at $7 in order to be equal to the other scenario. Miss $7 and the math doesn't work.



The dividend style doesn't require market timing as the other method does. Additionally, dividend portfolio size grows over time while buy/sell shrinks over time.

The math is correct however real life ain't math.
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Messages In This Thread
RE: How Dividends Can Cost You Money - Forbes - by NilesMike - 03-29-2017, 06:05 AM
RE: How Dividends Can Cost You Money - Forbes - by Caversham - 03-30-2017, 07:07 AM



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