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  5. MISC: Let us say we have 2 companies, one called "ABC" and one called "ABC Dividend" which pays 4% over the year. [Miscellaneous]

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Q: Let us say we have 2 companies, one called "ABC" and one called "ABC Dividend" which pays 4% over the year. At the end of the year, the dividend one would be down because of the dividend it paid for the previous 12 month period but you would have the dividend money.

ABC at the end of the year would be higher because it did not drop because it did not pay a dividend.

To me, I see that a dividend really does not benefit you. Why do people want dividend stocks so much when the example I used shows there is no benefit? Thank you.
Asked by Dennis on January 21, 2025
5i Research Answer:
The general conclusion is correct, that an investor should largely be indifferent to dividends...
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