Show HN: An index of all monthly dividend stocks • Hacker News Board

Re: Show HN: An index of all monthly dividend stocks

#111

Post by atombender » Mon, Jul 10, 2023, 7:38 PM UTC

venusenvy47 wrote: post #91

MikeDelta wrote: post #38

Earlier quoted context omitted.

Dividend paying stock has no limitations on growth compared to non div-paying stock. However when (cash) div-paying stock goes ex div, the stock price drops with that amount. (Even reporters sometimes forget about that and try to find reasons what news caused a stock to drop instantly.)

What is the mechanicism that drops the price? Does the market automatically adjust the ask price? Or do buyers instantly start offering a lower price at that moment?

In the US, the price adjustment is done by the stock exchange itself; the price on open is adjusted exactly by the dividend amount. It's not some collective emergent behavior of the market. (I don't know what non-US exchanges do.)

Re: Show HN: An index of all monthly dividend stocks

#112

Post by mystertea » Mon, Jul 10, 2023, 11:19 PM UTC

sershe wrote: post #110

There are lots of people commenting about dividends not being useful or whatever, but I think they are not your target audience :) And for your target audience, the people who like dividend investing (or liked it in low rate environment, like me) you appear to be missing a key feature... many/most dividend investors are looking for companies with history of uninterrupted payouts with no decreases in dividend (cuts) o…

Really good info, thanks. I'll add the dividend cut metric to my list. Not sure what you mean by yield vs history. I do have a chart comparing the yield to the stock price over time, but the window is only 4 years back. I'll try and expand that window, too.

Re: Show HN: An index of all monthly dividend stocks

#113

Post by sershe » Tue, Jul 11, 2023, 3:50 PM UTC

mystertea wrote: post #112

sershe wrote: post #110

There are lots of people commenting about dividends not being useful or whatever, but I think they are not your target audience :) And for your target audience, the people who like dividend investing (or liked it in low rate environment, like me) you appear to be missing a key feature... many/most dividend investors are looking for companies with history of uninterrupted payouts with no decreases in dividend (cuts) o…

Really good info, thanks. I'll add the dividend cut metric to my list. Not sure what you mean by yield vs history. I do have a chart comparing the yield to the stock price over time, but the window is only 4 years back. I'll try and expand that window, too.

I may not be the best source on yield vs history, cause I learned about it by looking at stocks I bought that did not pan out. But yeah basically for a company with stable, decade(s) long payout, if yield looks low vs the long-term, the price may be too high. Of course, it can depend on future prospects, market conditions, etc. But in general all other things being equal it seems to hold for boring stocks.

Re: Show HN: An index of all monthly dividend stocks

#114

Post by jjav » Sun, Jul 16, 2023, 5:11 AM UTC

roland35 wrote: post #33

Dividends generally are not super useful to investors - you don't get to decide when they occur and when you pay tax. If you are in the accumulation phase of life this isn't really useful if you are going to be reinvesting the money anyways. They aren't bad, just not really worth the hype. As always, bogleheads has a good writeup on dividends: https://www.bogleheads.org/wiki/Dividend

> you don't get to decide when they occur and when you pay tax

In a taxable account.

I keep high dividend stocks and ETFs in IRA accounts. For taxable accounts, I prefer stocks that are either growing or doing buybacks.