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Show HN: An index of all monthly dividend stocks

thedividendlist.com

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

#91

Post by venusenvy47 »

MikeDelta wrote: post #38
user_named wrote: post #35

Earlier quoted context omitted.

Wrong. You claim that AAPL goes from $100 to $99 when it distributes $1. The only way that mean anything is if you also claim that the next year, AAPL hands out $1 and drops to $98. Clearly that is not how the stock price has developed over the years. Dividend paying stocks don't decline in price. They increase in price, just like any other stock. And some decline, like any other.

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?

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

#92

Post by venusenvy47 »

memling wrote: post #89
ac29 wrote: post #86

Earlier quoted context omitted.

> I hate that dividends have such disadvantageous tax treatment in America What do you mean by this? Qualified dividends are taxed at long term capital gains rates, which is an enormous advantage compared to nearly all other forms of income.

Dividends are taxed twice: once as profit to the company issuing the dividend and once when the recipient receives it.

Isn't this the normal cycle of money? Continuing the example, the recipient spends some of this dividend money at Starbucks and pays sales tax. Then Starbucks pays income tax on the money and the cycle repeats.

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

#93

Post by mystertea »

tndibona wrote: post #70

I like the site. I’ve actually tried to use Schwab and Fidelity to locate long term stable dividend stocks but their search and filters are complex. Your site mostly lists funds so an option to filter by stock, or ETF, or managed fund would be helpful. Also a column that shows the expansion next to the abbreviated ticker name would be gold. Thanks for the effort

Just wanted to let you know that I added that feature. Hope it helps.

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

#94

Post by s1artibartfast »

venusenvy47 wrote: post #92
memling wrote: post #89

Earlier quoted context omitted.

Dividends are taxed twice: once as profit to the company issuing the dividend and once when the recipient receives it.

Isn't this the normal cycle of money? Continuing the example, the recipient spends some of this dividend money at Starbucks and pays sales tax. Then Starbucks pays income tax on the money and the cycle repeats.

Yes, money keeps being taxed but the number of tax events changes depending on the path the money travels. It can have more or fewer taxable events.

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

#95

Post by quickthrowman »

user_named wrote: post #35
anonu wrote: post #30

* "index" has particular connotation in finance. This is just a list - not an index. * Why "monthly"? There may be higher quality companies that pay quarterly. Why exclude them? * Have you looked at the myriad dividend ETFs? Things like SDY showcase funds that have regularly raised dividends YoY. ETFs may be a better way to get consistent yield and yield growth. Look into SDY, DVY or higher-powered div rates with SDI…

Wrong. You claim that AAPL goes from $100 to $99 when it distributes $1. The only way that mean anything is if you also claim that the next year, AAPL hands out $1 and drops to $98. Clearly that is not how the stock price has developed over the years. Dividend paying stocks don't decline in price. They increase in price, just like any other stock. And some decline, like any other.

> Dividend paying stocks don't decline in price.

They decrease in price by the amount of the dividend when the dividend is paid out (it’s actually when it goes ex-dividend, the payout may not happen for a few weeks). It’s extremely simple to understand.

The valuation of the company includes all cash, assets, debt, etc. If AAPL pays out a $1 per share dividend on 15.73B shares, they have $15.73B less cash. The valuation of the company drops by $1/share the instant after the dividend, and so does the share price.

The price action of AAPL after the dividend has been priced in has no relation to the dividend itself.

> Wrong. You claim that AAPL goes from $100 to $99 when it distributes $1. The only way that mean anything is if you also claim that the next year, AAPL hands out $1 and drops to $98.

A stock falling in value by the ex-dividend amount happens every single time a dividend is paid out.

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

#96

Post by quickthrowman »

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?

Market makers drop the bid/ask by the ex-dividend amount immediately after it is announced, or arbitrageurs short the stock when the ex-dividend amount is announced and then they cover their short once the ‘overvalued’ stock they sold is back at fair value.

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

#97

Post by [deleted] »

tndibona wrote: post #70

I like the site. I’ve actually tried to use Schwab and Fidelity to locate long term stable dividend stocks but their search and filters are complex. Your site mostly lists funds so an option to filter by stock, or ETF, or managed fund would be helpful. Also a column that shows the expansion next to the abbreviated ticker name would be gold. Thanks for the effort

[deleted]

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

#98

Post by [deleted] »

dmurray wrote: post #5
johng wrote: post #2

I'm using the site now... very handy. I wish there were a way to filter it. For example, maybe I don't want to see covered calls. What if I just wanted to see normal stocks (however you define that).

Are there any "normal stocks" on the list? Everything I checked is an ETF, ETN or REIT, which may have structural or tax-based reasons to return cashflow to investors monthly. Companies that actually make widgets or SaaSes or self-driving cars or other pillars of the 2023 economy seem to pay dividends either quarterly or not at all.

[deleted]

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

#99

Post by memling »

huhtenberg wrote: post #79
JKCalhoun wrote: post #51

Earlier quoted context omitted.

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

Not high dividends, but increasing dividends. For example, Caterpillar is of them, but its yield is under 3%. https://www.marketwatch.com/investing/stock/CAT

If you are a long term investor, dividend growth rate is an important metric when evaluating the aristocrats. At a 7.2% growth rate, your absolute payout will double in ten years regardless of the stock value appreciation. That may or may not be a good stategy for many inestors, but may be smarter than chasing yield.

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

#100

Post by dmoy »

fancyfredbot wrote: post #22
roschdal wrote: post #7

Dividends are useless, because the stock falls in value relative to the dividend when it is paid.

How much tax do you pay on dividends compared to realised gains on stocks? These two are rarely the same and sometimes a dividend is taxed preferably.

> How much tax do you pay on dividends compared to realised gains on stocks? These two are rarely the same and sometimes a dividend is taxed preferably.

If it's stock held for more than a year, it's the same. If it's 2-12 months, dividends get better tax treatment. If it's less than 2 months, it's the same.

For the vast majority of people and investment out there on an individual level, they're the same.

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