Comments by "Me, Myself and I" (@me-myself-i787) on "Dividends Are Irrelevant (Sort Of...)" video.

  1. Dividend-paying companies are no more stable or financially sound than other companies, and most dividend-paying companies won't continue paying dividends in a downturn when they're no longer making money.
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  2. ​ @EK-gr9gd On most modern brokerages, you don't need to sell your entire stake at once. You can take out a small fraction of that stake. Selling 2% of your position has the same impact as the company paying out 2% of their market cap as a dividend.
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  3. 8:10 Investors who interpret dividends this way are stupid. I would do the opposite. I would interpret stock buybacks as a signal of executive confidence in the company, and dividends as a signal of executives being more wary about the firm and therefore making investors sell off some of their position.
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  4. Someone should make an ETF based on something like the FTSE All-World Index or the MSCI ACWI, except without any of the dividend-paying stocks. Since so many investors overvalue dividends, this ETF would likely beat the benchmark index.
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  5. 5:06 Grant Cardone probably has his money in Realty Income, aka The Monthly Dividend Company. That hasn't worked out well.
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  6. 12:25 Another good example is Realty Income. 5% dividend yield with a P/E ratio of 40.
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  7. 12:40 Selling shares to pay dividends is a good idea if your company is in decline. Helps your shareholders to get more money out before it goes under. It helps if this is paired with an advertising campaign to attract new investors.
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  8. Stock buybacks are better than dividends most of the time. If a company does a stock buyback, then your stake in the company will increase just like it would have if it had paid dividends and you had reinvested them. Except you don't have to pay any taxes. Dividends are better when a company is overvalued; buybacks are better when it's undervalued.
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  9. ​ @fsdds1488 Failing to reinvest dividends has the same opportunity costs as selling shares (or fractions of shares) does.
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  10. By that logic, you might as well just hold cash, since you don't want your money to be inside the company.
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  11. ​ @uncreativename9936 But selling when the stock price is down has the same impact as the company paying a dividend rather than performing a buyback when the stock price is down.
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  12. But eventually, the company will engage in stock buybacks, so the company will be at the end of the chain. And with buybacks, your position in the company increases over time, so you end up with much more money than if the company had paid a dividend.
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