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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 267.80+11.8%Nov 10 3:59 PM EST
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franklin1
To: Art Bechhoefer who wrote (4417)5/1/2020 2:01:55 PM
From: SiliconAlley1 Recommendation   of 4826
 
The return on investment matters principally for the long term, and that equals the expected change in earnings per share, plus the dividend.

The statement demonstrates a basic misunderstanding of how this works. Return on investment equals the change in share price (from purchase to sale) plus any dividends received. Return on investment is unrelated to expectations, and only indirectly related to changes in earnings per share.

Any dividends paid out immediately come out of the share price on the ex-dividend date. Without the dividend, the share price will now be $2/year higher than it would have been with the $2 dividend paid out. It is a zero sum game, other than the company being able to grow the money that it otherwise would have paid out.
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