Quote:
Originally Posted by lewdog
Dividends only make sense for “income ” if the share price is relatively stable. A volatile stock price coupled with a dividend is a recipe for declining capital without a return to match.
TSLY seems to have the same downside risk as TSLA but lacks the growth potential during bulls to match the returns you’d have by actually just owning TSLA. Again, total returns!
https://seekingalpha.com/article/466...ar-performance |
thats not totally true
as long as the total return is higher ( taxes you pay on the dividends included, compared to long term capital gains of growth capture).. then even if the price drops, a high yield dividend stock can make sense..
but whats more concerning for some companies is the stability and risk of the dividend payment itself
https://seekingalpha.com/symbol/TSLY/dividends/history
Some companies have a proven track record of maintaining their dividend payment and even growing the dividend yield. This one (TSLY) looks really high right now but how long can they keep going like this?
For income / dividend ETF
I kind of like QQQX and QYLD. Maybe not as bold as TSLY but also less risky...