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Greg Loehr

 
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  • How Much Do You Want To Bet On That Dividend? [View article]
    Stop it Pete. You're hurting my feelings.
    Dec 7, 2012. 08:57 AM | 1 Like Like |Link to Comment
  • Anything In AOL Besides That $5.15 Dividend? [View article]
    Hey! Where's my 'guaranteed' 12% yield??
    Dec 6, 2012. 08:47 AM | Likes Like |Link to Comment
  • Beware The False God Of The Dividend [View article]
    "There is no profit or loss until you sell."

    I disagree with that statement. If you have an "unrealized" gain or loss, then it's only you and your account that haven't realized it yet. If a stock goes down, so do your profits.

    By your logic then a lot of billionaires on the Forbes list aren't really billionaires if their wealth is still held in the company's stock.

    And if your house lost value over the past few years, then your net worth has dropped as well. Even though you haven't sold your house yet. Don't believe it? Then ask the bank to loan you money against your house at a value higher than what it is currently worth. They probably won't do it.
    Dec 4, 2012. 05:45 AM | Likes Like |Link to Comment
  • Beware The False God Of The Dividend [View article]
    NV_Gary,

    Gotcha. Thanks for clarifying.
    Dec 4, 2012. 05:38 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    Again, if you believe that a dividend does not reduce the value of the stock, then there are plenty of trades that you can do to lock in money - risk free. If you can make money risk free, why would you bother with anything else?
    Dec 3, 2012. 10:11 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    The point being that people believe that dividends make one wealthier - and the AOL article goes to the extent of "guaranteeing" a profit. Such information is not only wrong, but dangerous, to investors.

    Therefore, articles like mine which show dividends for what they really are - a zero sum game - are necessary.
    Dec 3, 2012. 10:08 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    Once again, I'm saying that the dividend does not increase your wealth.

    Every example that people use to show that dividends DO increase one's net worth comes from the stock appreciating - not from the dividend itself.
    Dec 3, 2012. 10:05 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    Garthilk,

    No, it just won't drop when it pays out the dividend.
    Dec 3, 2012. 10:01 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    David,

    If you suddenly got back money that you paid out years ago, wouldn't your net worth rise?

    TTYL
    Dec 3, 2012. 09:54 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    Hmmmmm.....seems to make my point. Thank you.

    Of course, it's directly related to stocks because the fund is made up of stocks, and the fund dividend comes from company dividends.
    Dec 1, 2012. 10:37 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    First, stocks popping on dividend announcements mean nothing. For example you find of one stocking jumping on such news, I'll bet I can find one that doesn't. It means nothing to you (or me, or anyone) unless you owned the stock going into the big "pop".

    Second, large, previously unannounced dividends may prompt the OCC to adjust the strike prices lower by the amount of the dividend to keep one-half of the options market from a windfall at the expense of the other half. This adjustment has been declared in this case.
    Dec 1, 2012. 10:36 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    I have yet to see any of the pro-dividend commentators react to the following comments from a recent SA article:

    "AOL (AOL) has been on fire the last two days, sitting at near $42/share as this was written.

    The reason is simple: The company will pay a special dividend of $5.15/share. Even at $42, that's a guaranteed yield of 12% for money held in the stock for a little over a month."

    These statements are not only completely false, but dangerous to anyone buying or selling the stock. Whether you label yourself a trader or an investor, the market doesn't care.
    Dec 1, 2012. 10:25 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    Then trade it and make money if you're right.

    But after trading for one of the most respected options trading firms in the world, I'm willing to bet that option prices rarely get out of line with the pricing of a dividend.
    Dec 1, 2012. 10:19 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    My personal view is that dividends are neither good or bad. They are what they are, which is something that in and of itself does nothing for your bottom line.

    If you reinvest the dividend, or put that capital to work elsewhere, you MIGHT make money if your stock goes up. Or you might not make money. It all depends on whether the stock goes up, not whether you receive a dividend.

    If dividends truly make you wealthy, then why not just put all of your money into the biggest dividend-paying company you can find? Probably because you don't want to have another Enron, GM or C on your hands.
    Dec 1, 2012. 10:17 AM | Likes Like |Link to Comment
  • How Much Do You Want To Bet On That Dividend? [View article]
    "...you state that this proves that dividends don't provide value to the shareholder."

    Not exactly an accurate portrayal of what I'm saying. I'm saying the dividend doesn't make you wealthier. If you believe that a higher cash balance in exchange for lower equity in the stock is a 'value' to you, perhaps because you can reinvest that money, then great.

    But the higher cash value in exchange for lower equity doesn't make you wealthier.

    How did dividend reinvestment work in GM? How's it working in C? How'd it work in Enron - especially for the employees?
    Dec 1, 2012. 10:13 AM | Likes Like |Link to Comment
COMMENTS STATS
105 Comments
35 Likes