פרק 21 - איך דיבידנדים גורמים לכם להפסיד כסף?

שור פיננסי - הפודקאסט

28 Sept 202415:52

Summary

TLDRThe script is a comprehensive guide for novice investors on dividends. It clarifies misconceptions about dividends being a net gain for stockholders, explaining how they actually result in a loss due to tax implications. The video uses examples to illustrate how dividends work, the impact on stock price, and the tax consequences for different types of investors. It also discusses dividend reinvestment strategies, the psychological benefits of regular payouts, and the importance of considering dividends in long-term investment strategies.

Takeaways

💡 Dividends are payments made by a company to its shareholders, and they do not necessarily increase the wealth of the shareholders.
📅 The 'ex-dividend date' is crucial as it determines eligibility for receiving dividends; the stock price typically drops by the dividend amount on this day.
💸 Receiving dividends can result in a tax liability, which effectively reduces the net gain from the dividend payment.
📉 Despite the drop in stock price, the overall value of the investment may remain the same after accounting for the dividend received.
💼 Companies that consistently pay dividends are often seen as stable and profitable, but high dividend payouts might indicate a lack of growth opportunities.
🌐 Statistically, dividend-paying stocks do not guarantee higher returns compared to non-dividend paying stocks over the long term.
💭 The psychological benefit of receiving regular dividends can be significant for some investors, providing a steady income stream even during market downturns.
🚫 Investors cannot opt-out of receiving dividends, but they can make strategic decisions to minimize the impact of dividend taxes on their portfolios.
🌳 For long-term investors focused on growth, reinvesting dividends through a DRIP (Dividend Reinvestment Plan) or within a tax-advantaged account can be beneficial.
💰 Investors should consider the dividend yield in the context of the overall investment strategy and not as the sole determinant of a stock's attractiveness.

Q & A

What is a dividend?
-A dividend is a payment made by a company to its shareholders out of its profits or reserves. Not all companies are required to distribute dividends; some choose to retain profits for reinvestment.
When are shareholders eligible to receive a dividend?
-Shareholders are eligible to receive a dividend if they own the stock before the ex-dividend date. The company announces a dividend, and anyone who buys shares on or after the ex-dividend date will not be eligible for that payout.
What happens to a stock's price on the ex-dividend date?
-On the ex-dividend date, the stock price usually drops by the dividend amount because the company has reduced its cash reserves by that amount. This adjustment reflects the value that has been distributed to shareholders.
How does taxation impact dividend payments?
-Dividends are considered taxable income. In many cases, shareholders must pay a 25% tax on dividends, even if the stock was purchased at a loss. This creates a tax event that reduces the effective value of the dividend.
Why is the common belief that dividends increase shareholder value incorrect?
-The common belief is incorrect because dividends do not create additional wealth for shareholders. When a dividend is paid, the stock price drops by the same amount, and taxes are applied, which can result in a net loss.
Why might dividends not be beneficial for long-term investors?
-Long-term investors typically aim to grow their capital. Since dividends trigger a tax event and reduce the stock price, they might hinder the compounding effect. Investors who are in the wealth accumulation phase generally prefer reinvestment over dividends.
Are companies that distribute dividends more stable?
-While companies that regularly pay dividends are often seen as financially stable, dividend payments can also indicate that the company has fewer growth opportunities and might be stagnating. Growth companies usually reinvest profits rather than distribute them.
What alternative to dividend payments exists for investors seeking liquidity?
-Investors can sell a portion of their holdings to generate liquidity, similar to receiving a dividend. This approach may also allow for more flexible tax management, as capital gains taxes can be lower, and losses can offset gains.
Why is dividend investing often associated with value investing?
-Dividend investing often involves selecting stable, mature companies that generate consistent profits. These companies are typically valued for their income generation rather than growth, making them attractive to value investors.
What is a dividend yield, and how is it calculated?
-Dividend yield is the percentage of a company's share price that is paid out as dividends over a year. It is calculated by dividing the annual dividend per share by the share price. For example, if a company pays $1 per share in dividends and the share price is $100, the dividend yield is 1%.

Outlines

00:00

💡 Understanding Dividends

The paragraph explains a common misconception among new investors that dividends are a bonus for stockholders when a company is profitable. It introduces the concept of dividends as payments made by a company to its shareholders from its profits or reserves. The text clarifies that not all companies pay dividends and that they are announced and distributed on specific dates. It also explains the economic impact of dividends, how they affect the stock price, and the tax implications for investors. The example given illustrates that while the stock price drops by the dividend amount on the ex-dividend date, investors still receive the dividend if they hold the stock before this date.

05:02

📉 The Illusion of Dividend Profit

This section discusses the idea that dividends can actually lead to a loss for investors. It uses an example of a company that pays dividends and shows that despite the stock price dropping by the dividend amount on the ex-dividend date, investors do not lose or gain from the transaction. However, the real issue is the tax implications. Dividends are considered income and are taxed, which can result in a net loss after accounting for taxes. The paragraph also addresses the argument that stock prices may rise after a dividend drop, explaining that this is not always the case and that prices are influenced by various factors.

10:05

💼 Dividend Investing Strategy

The paragraph delves into the strategy of dividend investing, suggesting that it is generally more suitable for value investments and requires active selection of stocks with not only attractive dividend yields but also good growth potential. It points out that active investment in dividend stocks typically results in lower long-term returns and requires more management. The text also touches on the psychological aspect of dividend payments, suggesting that some investors prefer the certainty of regular payments even during market downturns. However, it concludes that from an economic standpoint, there is no advantage to this preference.

15:06

🌐 Global Impact of Dividends

The final paragraph discusses the global impact of dividends, emphasizing the need for investors to consider the tax implications of dividends in different countries. It suggests that investors might want to consider funds that reinvest dividends to avoid the initial tax hit. The speaker also invites listeners to join a community for further discussion on the topic and thanks them for their participation.

Mindmap

Keywords

💡Dividend

A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders. It is usually a cash payment but can also be in other forms such as additional shares. In the video, dividends are discussed as a common mistake among novice investors, where they are seen as a bonus to stockholders when a company is profitable. However, the video explains that dividends actually represent a reduction in the company's cash reserves, which can lead to a decrease in stock value and thus not necessarily a gain for the investor.

💡Ex-Dividend Date

The ex-dividend date is the date on which a security begins trading ex-dividend. It is the first day that the share trades without the dividend attached to it. If an investor purchases the stock on or after this date, they will not be entitled to the most recently declared dividend. The video script uses the term to explain when investors become eligible to receive dividends and how the stock price typically adjusts on this date.

💡Stock Price

Stock price refers to the last price at which a share of stock was traded in the market. It is a critical aspect for investors as it reflects the market's valuation of a company. The video discusses how the stock price is affected by dividends, particularly on the ex-dividend date, where the price typically drops by the amount of the dividend to reflect the reduced cash reserves of the company.

💡Investor

An investor is someone who allocates capital with the expectation of a return, which may be in the form of income, capital gains, or both. The video is aimed at novice investors, providing insights into the misconceptions around dividends and their impact on stock prices and investment returns.

💡Tax

Tax refers to the mandatory financial charge levied by a government on workers and businesses. In the context of the video, taxes are discussed in relation to dividends, where investors may have to pay taxes on the dividends they receive. The video explains that the tax on dividends can affect the net return on investment, which is a critical consideration for investors.

💡Yield

Yield in investing refers to the income generated from an investment, such as dividends or interest, expressed as a percentage of the investment's cost. The video uses the term to illustrate how dividends can affect the yield on an investment, and how this yield is calculated based on the dividend amount and the stock's price.

💡Capital Gains

Capital gains are the profits that result from the sale of an asset for a higher price than its purchase price. The video script contrasts capital gains with dividends, suggesting that while dividends may provide a steady income stream, capital gains are often the more significant source of returns for investors, especially in the long term.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The video mentions inflation in the context of dividend income, suggesting that the real value of dividends can be eroded by inflation if the dividend yield does not outpace the inflation rate.

💡Portfolio

A portfolio is a collection of financial investments held by an investor. The video discusses portfolio management in the context of dividend investing, suggesting that investors should consider the balance between dividend-paying stocks and other types of investments to optimize their returns and manage risk.

💡Growth Stocks

Growth stocks are shares in companies that are expected to grow at an above-average rate compared to the market. The video contrasts growth stocks with dividend-paying stocks, suggesting that investors in growth stocks are typically looking for capital appreciation rather than income from dividends.

💡Value Stocks

Value stocks are stocks that appear to be trading for less than their intrinsic value and have the potential to increase in value. The video implies that value stocks might be more likely to pay dividends, as these companies may have stable earnings and a history of paying dividends to shareholders.

Highlights

Dividends are a common misconception among new investors as a bonus for stockholders.

Dividends are payments made by a company to its shareholders from its profits or reserves.

Companies can choose to distribute dividends regularly or not at all.

Dividends are declared on a specific day called the 'ex-dividend date', which determines eligibility for the dividend.

The stock price typically drops by the dividend amount on the ex-dividend date.

The dividend yield is calculated as the annual dividend per share divided by the stock price.

Receiving dividends can actually result in a loss due to taxes on dividends.

Investors are taxed on dividends, which can reduce the net gain from holding the stock.

Dividends do not necessarily correlate with stock price increases.

Statistically, dividend-paying stocks do not provide higher returns than non-dividend-paying stocks over time.

Investors can simulate dividend income by selling a portion of their stock holdings.

Dividend strategies typically involve value investing, requiring active selection of stocks with attractive dividends and good growth potential.

Dividend-focused investing might not be suitable for long-term growth-oriented investors.

Dividends can provide a psychological benefit of regular income, which some investors prefer.

Companies that consistently pay dividends are often seen as stable and profitable.

Dividend payments can be a sign of a company that has stopped growing and may be facing competitive challenges.

Investors cannot choose not to receive dividends, but they can make choices to minimize the impact of dividends on their portfolio.

Investors can choose to invest in funds that reinvest dividends, avoiding the need to deal with the taxes and cash flow implications of receiving dividends.

There are tax-efficient funds designed to minimize or eliminate dividend taxes, which can be a consideration for investors.