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

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

#51

Post by JKCalhoun » Sun, Jul 09, 2023, 12:43 PM UTC

ricardobayes wrote: post #16

What is laid out here is called "yield chasing". Companies with extraorbitant dividend yield often end up losing much more on a 5Y timescale. There are very, very few companies that pay more than 3% and not end up losing money on the long run. (And even that is very bleak compared to just a vanilla S&P 500 yield). If there was a "magic bullet" high yield stock, everyone would flock and buy that one.

Perhaps you would prefer so-called "Dividend Aristocrats" that have a long track-record of high dividends.

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

#52

Post by habosa » Sun, Jul 09, 2023, 12:45 PM UTC

Nice site! I agree, this information is generally pretty hard to find.

I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned.

Stock buybacks are such shenanigans in comparison: they make money and use it to inflate the value of their shares. Often they do this to hit certain price targets that help with executive compensation (or just image). And in order to actually get your profit you have to sell, which means you’re no longer an investor.

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

#53

Post by mystertea » Sun, Jul 09, 2023, 12:49 PM UTC

habosa wrote: post #52

Nice site! I agree, this information is generally pretty hard to find. I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned. Stock buybacks are such…

Thanks! I agree that conventional stocks can be a hassle to manage, and intuitively like an income-based approach.

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

#54

Post by arbuge » Sun, Jul 09, 2023, 12:56 PM 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

Dividends may keep management disciplined, knowing they have to share some profits with shareholders. Companies without dividend payments that retain all their earnings may be more prone to destruction of shareholder value through empire building sprees by management.

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

#55

Post by ravenstine » Sun, Jul 09, 2023, 1:21 PM UTC

habosa wrote: post #52

Nice site! I agree, this information is generally pretty hard to find. I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned. Stock buybacks are such…

That's not all! Companies are allowed to use debt to buy back their stocks.

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

#56

Post by lacrimacida » Sun, Jul 09, 2023, 1:24 PM UTC

ravenstine wrote: post #55

habosa wrote: post #52

Nice site! I agree, this information is generally pretty hard to find. I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned. Stock buybacks are such…

That's not all! Companies are allowed to use debt to buy back their stocks.

Nobody is questioning the fact that they’re allowed or not, it’s an unhealthy practice

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

#57

Post by manmal » Sun, Jul 09, 2023, 1:30 PM UTC

habosa wrote: post #52

Nice site! I agree, this information is generally pretty hard to find. I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned. Stock buybacks are such…

I don’t think dividends are a great incentive as they encourage short term wins over long term thinking.

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

#58

Post by mystertea » Sun, Jul 09, 2023, 1:33 PM UTC

manmal wrote: post #57

habosa wrote: post #52

Nice site! I agree, this information is generally pretty hard to find. I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned. Stock buybacks are such…

I don’t think dividends are a great incentive as they encourage short term wins over long term thinking.

Even if you follow a dividend reinvesting strategy?

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

#59

Post by vmsp » Sun, Jul 09, 2023, 1:36 PM UTC

mystertea wrote: post #58

manmal wrote: post #57

Earlier quoted context omitted.

I don’t think dividends are a great incentive as they encourage short term wins over long term thinking.

Even if you follow a dividend reinvesting strategy?

I think the parent comment was talking about the companies. Instead of re-investing profits into the company -- long-term thinking -- they just pass them over to the investors -- short-term wins.

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

#60

Post by flakeoil » Sun, Jul 09, 2023, 1:36 PM UTC

habosa wrote: post #52

Nice site! I agree, this information is generally pretty hard to find. I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned. Stock buybacks are such…

"And in order to actually get your profit you have to sell, which means you’re no longer an investor."

But that is basically because the company bought some shares for you. So if you sell to create your own kind of dividend makes no difference (other than maybe how taxes are handled and psychological).