Comments by "" (@ThePlainBagel) on "Why Investors Love Dividends (And Why They Can Be Dangerous)" video.

  1. Very true! I agree that a lower price does not mean that a stock is impaired, payout is a great way to check the pulse of a company's dividend yield.
    83
  2. Totally agree, I am actually far from an advocate of dividend-only strategies. The video was more so a commentary on why some people go that route, but as with every strategy there are pros and cons!
    14
  3. Thanks Brandon!
    7
  4. Thank you!
    6
  5. Great point, that is definitely a concept I hope to cover soon, however for this video I wanted to ensure I got to the more general concepts first. My hope is to eventually create a follow-up video called "Why investors hate dividends" to showcase the arguments against dividends.
    5
  6. Thanks for the kind comment! Theoretically they are approximately equal in impact, though tax implications for investors can influence the total return they get from each. I’ll try to expand further in my next Q&A :)
    5
  7. FightDirtyRS yea I’ve gotten a few comments on the music now, newer videos are using a different track, hopefully it’s not as distracting
    5
  8. quietthomas the “highest yields” :P
    4
  9. Yes sir! Usually we see the stock's price fall the day the dividend is paid out, though I used a flat price for simplicity
    4
  10. Thank you!
    3
  11. alixyz you should get that checked out
    2
  12. That’s certainly a likely outcome of rising dividends; I just kept the price flat to keep the example simple
    2
  13. If you mean billionaire as in they had a billion US dollars (what I imagine people mean when they say billionaire), then no he wasn't :)
    2
  14. No you won't lose your share! The only time that might happen is if you're having your dividends re-invested into the stock via a DRIP (instead of getting cash, you just get more shares).
    2
  15. Thank you!
    2
  16. Thank you that’s very kind!
    2
  17. Not really; from the company’s tax perspective, it doesn’t matter if they pay out or keep their dividends because they’ve already paid taxes on the amount
    2
  18. Yes! I noticed an error and took it down 10 minutes after I uploaded it the first time haha
    1
  19. Thank you!
    1
  20. Kevin Street thanks! Glad it was useful
    1
  21. The stock price was held constant for simplicity, to isolate the dividend return; incorporating price return would add a layer of complexity. Obviously, a growing stock price would reduce the compounding ability, but would simultaneously increase your price return.
    1
  22. Thank you!
    1
  23. I can't argue on the religious front, but ethically dividends are simply compensation for a business owner. Think about a private business; if you start a company and hire workers for it, you won't get any money yourself unless A) you give yourself a salary, or B) you pay yourself dividends. Dividends have a clear tax advantage to a salary, so its a no brainer. I additionally believe that if dividends weren't an option to compensate investors for contributing money to a business, we would have a significantly smaller economy, which would mean fewer jobs and overall lower wealth for the masses. I agree there's an argument to be made against high dividends from companies that don't pay their workers well, but salaries can have that same abuse; many executives are paid dis proportionally for their work.
    1
  24. Yea by billionaire I meant in terms of U.S. dollars, though yes I've heard there are estimates that people have had more in the past.
    1
  25.  @Chrissy3615  Yes haha sorry, I'm just making a dumb point to argue that I'm technically correct. The US dollar didn't physically exist back then. The first person to actually own 1B U.S. dollars (not just stuff worth $1B) was Rockefeller, and when we say billionaire, we are referencing someone who own's 1B USD, not 1B pieces of gold or whatever. But yes Mansa Musa was incredibly wealthy.
    1
  26. Thanks Christopher!
    1
  27. same
    1
  28. Thanks man! Hope all is well!
    1
  29. Not in American dollars anyway
    1
  30. Thanks for the kind words! I'll think about covering more specific companies :)
    1
  31.  @gionathanyelsaludo1351  Yes if it's a healthy and stable company, you will keep receiving dividends into the future and you won't see your shares directly impacted, even if you withdraw the cash.
    1
  32. Thanks dude! And I’ll check it out!
    1
  33. You know what, that's how it's always presented in research reports and I've noticed that haha
    1
  34. First person with a billion USD :)
    1
  35. Yea I've since changed my set up to avoid the distracting eye stuff, should be better now!
    1
  36. No it's not about how much they make, it's about the incremental profit they would earn if they kept the money and reinvested it into operations. Hope that clears it up
    1
  37. Yessir!
    1
  38. Felipe Behrens unfortunately I can’t give recommendations for individual positions, so I’ll have to leave that decision to you. Just make sure, when researching the company, you ensure it’s dividend is healthy (and preferably growing!)
    1
  39. I’m honoured 🙏
    1