ELI5 why do people chase dividend stocks? From what I…
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ELI5 why do people chase dividend stocks?
From what I understand, dividends aren't free money as the amount you receive is taken from the price of the stock. So in a way, distributing dividends is forcing you to sell your stock as your net worth doesn't change, but your stocks got converted to cash.
So my question is, why do people chase dividend stocks or build dividend portfolios when you can get the results by just selling the stock?
#business
source
From what I understand, dividends aren't free money as the amount you receive is taken from the price of the stock. So in a way, distributing dividends is forcing you to sell your stock as your net worth doesn't change, but your stocks got converted to cash.
So my question is, why do people chase dividend stocks or build dividend portfolios when you can get the results by just selling the stock?
#business
source
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