Quote from: Lohoris on July 18, 2013, 09:42:26 AM

Quote from: ThickAsThieves on July 17, 2013, 08:05:12 PM

Quote from: notme on July 17, 2013, 07:45:23 PM

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.

WAT

Of course they are: if you pay 5% less, the share is *exactly* worth 5% less.

The dividend is the only thing that matters in the end:
if you are an investor you don't care about share price once you have bought it,
if you are a speculator you do care, but since for investors the price is 5% lower, it will as a consequence be lower for speculators too.

The only value in this asset is the dividend, since it bears no voting powers or whatever, anything else are just ghosts.

If you get 5000 shares you can become a board member. I assume they vote on stuff, so that would imply that the shares do have value in that sense. Also, I think most investors do care about the share price going up...