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/biz/ - Business & Finance


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27844970 No.27844970 [Reply] [Original]

>buy a stock
>it does nothing and you hodl
>buy a different stock
>it "pays dividends"

why? what is this?

>> No.27845070

new traders are cute

>> No.27845220
File: 33 KB, 512x341, 1612552421938 (2).jpg [View same] [iqdb] [saucenao] [google]
27845220

>>27844970
I-i am a faggot??

>> No.27845317
File: 239 KB, 1080x1391, Screenshot_20210205-140955_Chrome.jpg [View same] [iqdb] [saucenao] [google]
27845317

CLF reinstating dividends soon

Get in before that

>> No.27845934

>>27844970
its like a gf, she does nothing, and you pay the dividends

>> No.27846635

>>27844970
there's two ways a company spends money generally
>use all the profits to fuel aggressive growth which makes the company overall more valuable as they gobble up market share from less profitable and less efficient companies
or
>be a machine that mostly spins off profits in the form of dividends to shareholders

either strategy can be attractive to investors but generally attractive to different types of investors.

coca cola is a well known example of a dividend stock. the company sells drinks, people buy the drinks, company profits, company pays dividends to shareholders. of course they also reinvest some of the profits into developing new drinks and increasing market share, but mostly people buy into coca-cola for the dividends.

>> No.27846803

>>27844970
>company makes moneys
>you own (part) of company
>you get money

>> No.27846896

>>27845220
lmao

>> No.27847369

>>27845220
based faggot

>> No.27847468

>>27844970
Imagine the smell

>> No.27847719

>>27845317
Why should I buy Cleveland cliffs genuine question?

>> No.27847912

>>27846803
i learn so much coming here

>> No.27848019

>>27845220
has he always been there in this pic?

>> No.27848074

>>27845220
Have you spotted the MYSTERY yet?

>> No.27848264

>>27846635
If you own coca-cola shares via say, Robinhood, how do you receive those dividends? Do you even receive them?

>> No.27848352

>>27844970
haha fucker i read the bottle

>> No.27848466

>>27844970
There are only two ways a stock makes money for its holder.

Either the company realizes a profit and shares the profit with its shareholders as a dividend, or the value of the company grows (greater sales) and the company buys the stock back from the shareholder at a higher price.

That's it. Dividends or Buybacks. Everything else in the market is merely a derivative of these two.

>> No.27848471

Who's that chick she makes me horny

>> No.27848551

>>27848264
If you have them in robbinhood you wont get divies, get a different broker
Normally the broker adds them to your cashstack

>> No.27848719

>>27848074
screaming face on arm
screaming face in bottle
nice

>> No.27848809

>>27845220
imagine

:,-(

>> No.27848947

lol all this time

>> No.27848981

adolf hitler in the background kek

>> No.27849104

>>27844970
>not letting your money make you money so you can feel comfortable doing other shit besides staring at lines all day
NGMI

>> No.27849157

Best dividends stocks?

>> No.27849191

Dividends are a scam, if you want extreme low risk just buy USDC and put it into an exchange that pays out 10% interest

>> No.27849193

>>27844970
needs to get blacked if she hasnt already

>> No.27849257

>>27844970
There's something in her left eye but I cannot tell what it is lol.

>> No.27849264

>>27848264
In Robinhood the dividends will get paid into your cash balance, unless you set it to DRIP which means the dividends will buy more shares instead

>> No.27849378

>>27844970
well, dividends are what you're owed from the earnings that come in. you buy stock, you own part of the company. ownership means entitlement to that share of the earnings pile.
generally, you don't want a dividend from a company that is better than you are with the capital, because you pay a tax on that gain. if it's someone with an obviously bright future, then you want them to retain all their earnings. they will redeploy it in still further growth, more and more earnings. thus the price their stock commands goes up, and your investment appreciates. this is great if the company is, for example, berkshire-hathaway.
however, you do not want to trust managers of lesser operations with your money. you want it back. moreover, at a certain point in wealth stacking, you are simply buying an income stream. when the stability of that income stream is more valuable to you, than appreciation would be given the risk you would be assuming for either, then that's when you begin to switch over.
but ultimately, it's a question of promises. retained earnings are a promise of a bright future. is it coming or not? do you trust them to deliver or not?

>> No.27849511

>>27849157
Oil companies and real estate companies pay large dividends.
You can earn better yield in crypto usually

>> No.27849530

>>27849157
the ones that grow their dividend year after year, not simply the ones who pay it and are stable and aren't overpriced.
examples: https://wallethacks.com/dividend-aristocrats-kings-champions/

>> No.27849822

>>27847719
Steel is going nuts, CLF is beating earnings estimates 6 quarters in a row, possible dividend income like X so boomer money, and the power of dedicated autism that CLF chad brings to our board. I'd buy a thousand shares if I had the means to. When all the Steelgang Frog Mafia is rich we should put CLF poster as an honorary striker in the 4cc.

>> No.27849977

>>27849511
crypto is just a wealth transfer scheme, cleverly crafted so that a handful of white commie STEM faggots can live off the pajeets who take their jerbs. i regret my involvement in bitcoin even though it paid off my house.
those businesses actually do something for their customers.

>> No.27850427

>>27844970
dividens are mainly stocks that historically do not increase at as high of a rate

>> No.27850717

>>27849191
Unironically this. It's kinda funny to watch how everything you were taught about investing just becomes invalidated with crypto. Literally nothing goes by the book anymore.

>> No.27850780

>>27844970
dividends are inherently bearish, don't buy stocks that give dividends

>> No.27850886

>>27849191
wait does this really work

>> No.27851070

>>27850886
Yes, what the fuck do you think the meta is right now

>> No.27851310

>>27844970
Some companies put up a dividend, which is a portion of their profit, in order to encourage investment. Usually they will do this if they are highly confident of consistent profits, whereas it might not be worth it for a struggling company to have dividends.

>> No.27851521

>>27850886
Yes. Getting like 1k a month from 100k since july. The APY is variable though. High during bull markets, much lower when market is bearish. It fell to like 3-4% in September. Still better than a savings account and low risk. You can get like 6% from BNB on Binance too if you want to diversify your stablecoins to mitigate risk but decentralized solutions offer higher yields.
I've been telling my normie friends about it, they all say it's a scam, impossible... There's no redeeming them.

>> No.27851739

>>27851521
Meant BUSD not BNB

>> No.27851795

>>27851521
damn i hope that still works once i get to a real amount of money. I was planning on putting it in AT&T and live off the dividends and reinvest what i dont need once I get to like 500k

>> No.27851904

>>27848019
He's in most iterations of this pic, yes. It's a minor meme.

>> No.27852230

>>27849822
its going nuts because they are like 6+months behind on orders so everyone is trying to get shit.

t. work in a stamping plant that has run out/vert low on steel

>> No.27852354

>>27849822
how come MT isn't going nuts there was some italian guy on WSB shilling it for months bc of steel prices going through the roof

>> No.27852508

>>27849977
>crypto is just a wealth transfer scheme, cleverly crafted so that a handful of white commie STEM faggots can live off the pajeets who take their jerbs.

Sounds good to me. Sounds like economic justice, even.

>> No.27852757

>>27852354
I dont listen to reddit. My investing philosophy is follow autism, follow frog avatars on webull, and go big.