Timeline for Are dividends an actual gain value?
Current License: CC BY-SA 4.0
6 events
| when toggle format | what | by | license | comment | |
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| Jan 15, 2021 at 13:01 | comment | added | Crowman | @WayneF: Exactly, and if you bank at a credit union, they'll even often call your interest a dividend for you. | |
| Jan 15, 2021 at 1:01 | comment | added | WayneF | The bank account seems a good comparison. No one is bidding up the price of a bank dollar, but that's a different subject. The similarity is that both plans have our invested money, and we are paid a mostly regular scheduled "dividend" based on how much money is in the account. In one, the dividend equally adds into our account, so the account increases, which is a reason we do it. In the other, it is taken out of our account which decreases equal to the dividend, but if we should put it back, then the account stays at the same value. But it is called a dividend, so we seem to like it anyway. | |
| Jan 14, 2021 at 23:03 | comment | added | Crowman | @BobBaerker: Of course your bank doesn't actually do that, otherwise there would be no need to "suppose that...the value of your bank account is the current balance, plus interest earned but not yet paid". The whole point was to explain the difference between the two, so remarking that the two are different is a complete non-sequitur. | |
| Jan 14, 2021 at 22:46 | comment | added | Bob Baerker | You bank interest analogy is structurally incorrect because the bank does not reduce the value of your account balance when they pay you interest whereas that does occur with a stock, ETF or mutual fund on the ex-div date. Using the same or a different account at the bank changes nothing and is merely a distraction, as is the concept of selling your bank account for your statement's value. | |
| Jan 14, 2021 at 21:26 | review | First posts | |||
| Jan 14, 2021 at 22:39 | |||||
| Jan 14, 2021 at 21:25 | history | answered | Crowman | CC BY-SA 4.0 |