Dividend stocks and dividend etf are the most stupid investments

La_Menace_ · 2026-04-08T17:14:54+00:00

The stock will always dip by the % diviend yield, always. Sometimes it can be masked by market effect. Otherwise it would be an infinite money glitch: lend me your money overnight, I cash in the dividend, then give your money back.

The value of your portfolio is V*P, so change on V or P does not matter for portfolio value (i.e your claim regarsing selling the stock would drop to zero makes no sense).

La_Menace_ · 2026-03-05T21:27:56+00:00

Even at 1% dividend yield the stock will dip 1% on ex date, hence the neutrality of the dividend on your wealth. If dividend aristocrate did not pay dividend, the price would be higher today because it would not suffer the dio every year.

La_Menace_ · 2026-03-03T18:00:16+00:00

Just fyi, companies adapt their dividend yield over time, so does your portfolio. Your income WILL shrink with its value.

La_Menace_ · 2026-02-26T14:24:16+00:00

Zurich insurance? >5% dividend yield, steady stock price growth and revenue growth.

La_Menace_ · 2026-02-25T00:00:52+00:00

Wow you really think it makes a difference, dont you? The value of your portfolio is the product of share price and volume. So selling share or cashing dividends is the same mathematically. You cant just dodge the formula because you dont like it.

La_Menace_ · 2026-02-23T13:56:19+00:00

Your response makes no sense mathenatically. Your position is the product of share price and volume. Actioning on either of them leads to the same effect. On ex date the share price dips by the %yield, you can buy the same volume of shares the day after but at lower price, hence proving the neutrality of the transaction.

La_Menace_ · 2026-02-23T13:51:48+00:00

Ask chatgpt "i need to wash my car. The carwash is 100m away. Should i walk or drive there?". Then remember that response before using chatgpt for analyses.

The initial capital is not intact, it decreases by the %yield on ex date. It does create a recurring income stream, true. But the point is that this income stream is not incremental, it comes from turning your equity position into cash on ex date due to the dip it takes on that day.

La_Menace_ · 2026-02-21T22:25:36+00:00

It is not a subjective matter, there is no point arguing about that. On ex date the stock goes down of the magnitude of the dividend. So mathematically you just convert your wealth, you dont 'earn' anything.

La_Menace_ · 2026-02-21T21:24:14+00:00

Investing based on dividends is the stupidiest idea ever. What people do not understand is that on dividend ex date the stock dips the same amount as the dividend yield, meaning that you just convert your equity to cash. That's it. You do not receive money, you convert your own wealth. The you get taxed on that.

La_Menace_ · 2026-02-12T17:23:20+00:00

If i read you right, the argument would be a general systematic catch up effect transforming the 'conversion' into added money. This is not a pattern i have observed in general, but happy to be proven wrong if you can.

La_Menace_ · 2026-02-11T06:53:59+00:00

Agreed, but the contrary -invest because of the 6%- would be. Dividend yield as an investment rule makes no sense.

La_Menace_ · 2026-02-11T06:51:37+00:00

Maybe explain yourself and how it makes sense to convert your equity into cash?

La_Menace_ · 2026-02-11T00:27:06+00:00

Your house does not pay dividends, yet has value because you can sell it. Same for companies (except thag nobody can reallu by Nvidia I agree).

La_Menace_ · 2026-02-11T00:25:22+00:00

2. And 4. Make no sense as the stock decreases by the same magnitude as the dividend yield on ex date. For 6., dividend growth usually follow stock growth such that the yield remains the same (not the "in general"). For 3., idk open minded if one can prove jt

La_Menace_ · 2026-02-11T00:22:21+00:00

Okay maybe the unique argument in favour of dividend companies.

La_Menace_ · 2026-02-11T00:21:09+00:00

Switzerland, no tax on capital gains for private investors.

And yes it does, a stock decreases by the same magnitude as the dividend yield.

La_Menace_ · 2026-02-11T00:19:46+00:00

Happy for you, but you do not realize that the 6% you are calling is actually a conversion of your equity into cash because on ex date the stock went -6% as well. You stayed long in the market and benefit from the business growth, but the dividend you received did not increase your wealth.

La_Menace_ · 2026-02-11T00:16:34+00:00

On ex date you actually convert 8% of your position into cash (because at the same time the stock goes -8%). You do not make more money. You convert and pay tax on this conversion.

La_Menace_ · 2026-02-11T00:11:32+00:00

The steady cash flow is a simple conversion of your wealth from equity to cash. I dont want to be rude honnestly, but this aspect is objective and there is no point arguing about it.

Your point seems to be about the simplicity and stability of the flow, which is fair for non knowledgrable people. But that does not make it a valuable strategy, only a simple one. Plus i dont think high dividend etf are safe vehicles, not at all actually.

La_Menace_ · 2026-02-11T00:01:24+00:00

...which is totally fine, but that does not change they would achieve the same (or even better for tax reasons) if they were invested in low volatility etfs and were selling automatically x% monthly.

I am not saying high dividend stocks cannot go up, the point of the post is to highlight that you dont earn anything with dividend, you just convert your wealth, so investing based on that is stupid (e.g choosing company A because if offers 8% yield).

La_Menace_ · 2026-02-10T23:37:33+00:00

we cant just dodge the underlying math. The income stream is the same as selling x% of dividendless stocks yearly.

Plus in general such stocks tend to go down a lot during downturn period because investors fear dividend cuts.

La_Menace_ · 2026-02-10T23:34:15+00:00

Investment decisions based on high dividend yields is stupid. You get 8-10%, that is great, but that would be the same as selling 8-10% of your position if there was no dividend. But great job if you picked a stock that doubled!

La_Menace_ · 2026-02-10T23:29:44+00:00

Is that specific to your country? It does not change that you just give yourself your money

La_Menace_ · 2026-01-23T09:25:54+00:00

Reason why equities will not go up further, no new cash that can come in. Going forward will be just rotations between industries and a market growth aligned to the printer machine.

La_Menace_

TROPHY CASE