Kind of rational. You get a 5% discount in your dividend.
well, then the price should be 5% of .5% (.025%) less, cause that's the difference.
4% > .025%
well, ok, so let's look at dividends for the year (4.3, 30% APR). 5% of that is .0645 btc.
4% price difference doesn't make sense when your fee is 5% of the dividend (usually less than 1%).
Only the last sentence is correct.
5% price difference is what you should expect on a 5% dividend fee.
Every time you get paid, you get 5% less.
Velacreations has the right idea, and is even trying to teach you, forgoing his own advantage.
The 5% mgmt fee on dividends does not directly devalue the share by 5%. The math is not as simple as that.
Believe what you want, but those who can do better math, and those who are better at trading will just benefit more.
Share price and yield from dividend are not proportionally correlated. For example, it was not long ago that AM shares were half the price of today, and paying the same divs. Divs did not double, yet the price did.
http://www.investopedia.com/terms/d/dividendyield.asp
Quote
A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
By definition annual dividend yield is inversely proportional to share price.
Now if you want to claim that annual dividends is not proportional to share price, then sure.