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0 pointsJumpCrisscross1y ago0 comments

> when companies en masse stopped paying stock dividends

Do you mean cash dividends [1]?

Also, the premise is false. Dividend yields have roughly tracked interest rates [2]. (The difference is a dirty component of the equity risk premium [3].)

[1] https://www.investopedia.com/ask/answers/05/stockcashdividen...

[2] https://www.multpl.com/s-p-500-dividend-yield/table/by-year

[3] https://www.investopedia.com/investing/calculating-equity-ri...

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cft1y ago

I changed the typo, thanks. Chash dividends. This analysis does not negate common sense: when a company does not pay cash dividends, owning its stock is purely speculative, like owning Solana. When it does, you get cash dividends funded by the company's tangible revenue, proportional to your number of shares.

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