Bernardus Smith @BernardusJS: "𝗔 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝗜𝘀 𝗡𝗼𝘁 𝗙𝗿𝗲𝗲..."

Luxembourg

𝗔 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝗜𝘀 𝗡𝗼𝘁 𝗙𝗿𝗲𝗲 𝗠𝗼𝗻𝗲𝘆 Imagine you own a share worth €100. The company then pays you a €5 dividend. Once the share trades without the right to receive that dividend, its price should theoretically fall to roughly €95, assuming nothing else changes. You now have: * A share worth €95 * €5 in cash * Total value of €100 The company has not magically created another €5 of wealth. It has simply transferred €5 from its bank account to yours - and you may now owe tax on it, potentially leaving you slightly worse off. Dividends should therefore not be confused with investment returns by themselves. What matters is the company’s total return: the dividends received plus the change in its share price. A growing dividend funded by growing profits is valuable. A dividend funded through debt or at the expense of the business may be something very different. $KO (Coca-Cola) $JNJ (Johnson & Johnson) $O (Realty Income Corp) $NVO (Novo-Nordisk A/S SPONS ADR) 𝗔𝗿𝗲 𝗱𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝘀𝘁𝗼𝗰𝗸𝘀 𝗽𝗮𝗿𝘁 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆?

Not investment advice. The author may have financial interests in the mentioned instruments.

Yes, a major part

100.00%

Yes, a small part

100.00%