why do you think I chose Macy's for my post today? we all know that Macy's is the largest and oldest company in the U.S., founded back in 1858, but I'm not interested in it because it has such a rich history. The point is, this paper is rolled into a coffin. Its value fell by 19% yesterday at the trades: from 5.94 to 4.81. And that's why: dividends! But let's go step by step.
Now against the backdrop of panic, many "experts" advise to buy dividend stocks: they say it's okay, let the paper fall, but the dividends will compensate. And then we'll see if it grows. Frankly, I haven't heard a crazier idea yet. Are you people serious?
For those who may not be aware of and are facing dividends for the first time, here is a short historical overview. Dividends are a part of the profit of a joint stock company, distributed among shareholders in the form of earnings per share. The history of dividends goes back several centuries. The first joint stock company in the modern sense was the British East India Company, which was engaged in sending expeditions for spices. From 1600 to 1657, the company operated under a system of permanently renewable capital: the shares of the participants were returned to them after each voyage at the expense of profits from the sale of spices. And in 1657 the charter of the company was changed so that the company began to pay dividends, retaining sufficient capital to organize the next expedition.
Let's go back to our days: I have never seen such a waiver of dividend payments in the last two weeks. At least three companies have announced it: OXY ( I wrote about it before in the post of oil ), BA and Masy's. It should be understood that companies that refuse to pay dividends will fall the fastest, because the public refusal to pay suggests that there are problems in management and the management can not handle with the situation. In this sense, companies are trapped in some way. Let's move on. Now they're advising you to buy dividend stocks. Guys, this is bullshit. First of all, quarterly reports will be bad, if you buy stocks hoping to be compensated by dividends, it's unlikely to happen, because quarterly reports will be bad.it's possible that many companies will still be refusing dividends. This way, you buy falling paper in the hope of getting divs paid, and they will be cancelled and u will fall even more. Friends, when there is uncertainty in the market, being without a position is also a position, and perhaps the wisest.
Take care!) By the way, I'd be happy to your comments or likes. So I can see that you care about what I do. I'm motivated by that.)
Now against the backdrop of panic, many "experts" advise to buy dividend stocks: they say it's okay, let the paper fall, but the dividends will compensate. And then we'll see if it grows. Frankly, I haven't heard a crazier idea yet. Are you people serious?
For those who may not be aware of and are facing dividends for the first time, here is a short historical overview. Dividends are a part of the profit of a joint stock company, distributed among shareholders in the form of earnings per share. The history of dividends goes back several centuries. The first joint stock company in the modern sense was the British East India Company, which was engaged in sending expeditions for spices. From 1600 to 1657, the company operated under a system of permanently renewable capital: the shares of the participants were returned to them after each voyage at the expense of profits from the sale of spices. And in 1657 the charter of the company was changed so that the company began to pay dividends, retaining sufficient capital to organize the next expedition.
Let's go back to our days: I have never seen such a waiver of dividend payments in the last two weeks. At least three companies have announced it: OXY ( I wrote about it before in the post of oil ), BA and Masy's. It should be understood that companies that refuse to pay dividends will fall the fastest, because the public refusal to pay suggests that there are problems in management and the management can not handle with the situation. In this sense, companies are trapped in some way. Let's move on. Now they're advising you to buy dividend stocks. Guys, this is bullshit. First of all, quarterly reports will be bad, if you buy stocks hoping to be compensated by dividends, it's unlikely to happen, because quarterly reports will be bad.it's possible that many companies will still be refusing dividends. This way, you buy falling paper in the hope of getting divs paid, and they will be cancelled and u will fall even more. Friends, when there is uncertainty in the market, being without a position is also a position, and perhaps the wisest.
Take care!) By the way, I'd be happy to your comments or likes. So I can see that you care about what I do. I'm motivated by that.)