Quote:
Originally Posted by Hog's Gone Fishin
I show MSTY on my spreadsheet on 5/3/24 at 29.49 it's paid dividends of 2.52, 3.03, 2.33 since for a total of 7.88 which is a 26.7% return on investment in 3 months meaning in 12 months all your initial investment is returned and everything after that is free money, Doesn't matter if the share price has gone up or down. It's all free money after that. That's the way dividend investors look at these.
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The current stock price is 25.26, for a "loss" of 14.3% on the capital. At some point if the capital gets eaten up, they'll do a reverse split like TSLY has already had to do and when you lose shares, you lose dividend income paired with loss in capital.
You are still taking on inherent downside risk while limiting the upside you could be getting on a major move up like NVDA has shown. It just makes little sense.
Using the "dividend" as free money argument is so misleading when capital (share price) continues to decline with downside moves.
I think if you time an entry well you could do well for 6-12 months, but then I would move on. If you had picked TSLY last year, you'd have been ****ed.