Why do you want dividends? They are forced taxable events that you have no control over. When a dividend ex date occurs the value of the asset adjusts to reflect the dividend. Its not value that just magically appears.
Why do you want dividends? They are forced taxable events that you have no control over. When a dividend ex date occurs the value of the asset adjusts to reflect the dividend. Its not value that just magically appears.
So you can live off it without dwindling your shares. For example, suppose Warren Buffett owns 5% of Apple and he needs money now. Maybe 4% of Apple tomorrow will be worth more than 5% of Apple today, and he could get richer in dollars despite selling, but he's simply not interested because then he would only own 4% of Apple and not 5%. So he takes is $0.20 or $0.80 dividend instead and is happy.
So you can live off it without dwindling your shares. For example, suppose Warren Buffett owns 5% of Apple and he needs money now. Maybe 4% of Apple tomorrow will be worth more than 5% of Apple today, and he could get richer in dollars despite selling, but he's simply not interested because then he would only own 4% of Apple and not 5%. So he takes is $0.20 or $0.80 dividend instead and is happy.
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