What do you have to say about this:
If I take 5% off the top, I have to take 5% off the bottom to have the same dividend yield.
If I take 5% off the top, I have to take 5% off the bottom to have the same dividend yield.
If AM decided to retain dividends for 6mos to do a massive expansion, are the shares now worth 0? 50%? What?
Dividends are not the only driver of price, thus dividend yield is an incomplete way to factor it. 5% mgmt fee on divs cannot be directly converted into a 5% less valuable share.
It ignores so many factors. How long do you intend to hold the shares? What will the price be when you sell? How much will you have collected in dividends by then? None of those things are absolute, nor is the yield %.
You would need to hold the shares for a considerable amount of time to realize a 5% loss in gains (respective to share price) from the mgmt fee.
Maybe an extreme example will help. If AM shares go up to 100btc each, but the dividends stay at about .025 per week. Is a 5% mgmt fee still going to justify TAT.AM selling for 95btc? Of course not.
I agree that current dividends are not the only driver of price, but people wouldn't buy if they didn't expect future dividends. For my investment I use a combination of current dividend yield and future growth potential, but I'm more of a long term investor than a trader like many here seem to be. Seeing as how it is the same company, growth potential is the same (unless I don't trust you, but that would cause me to value AM1 even more highly since I can convert those to direct shares). Current dividend yield is equal at 95% AM1 price for AM100.
If AM shares go to 100BTC with a dividend yield of 1.3%, they had better have a good story to back it up. But ultimately, if I was comfortable enough with the story to accept the temporarily low yield, I still would discount it 5% because I am valuing the future dividends that the price implies. If I don't value them so highly, I will sell out.