Xan wrote: ↑Wed Feb 08, 2023 6:08 pm
There's not anything wrong with applying some investor psychology to yourself and realizing that you appreciate dividends and that they help you ignore price swings.
Except what You have is called the empowers new clothes …
While investor mental behavior is a good thing , believing one’s own bull shit is another .
Mentally I like my buckets , but I know damn well they anre adding nothing financial to the equation, it is just a mental thing.
But I wouldn’t argue the fact that they are financially adding some financial advantage
Knowing something is not adding a benefit and doing it is very different than believing financially there is a non existent benefit.
Just look at a fund when it pays out , it is a non event …you had x amount being compounded when you went to sleep .
Next morning you have that much less invested in that fund available for compounding …..if you reinvest it then you have the same amount working for you that you did the day before .
It’s a net gain wash …all that happened is your share price was sold off ….it is dollars invested that gets compounded , not number of shares .
Which is why stock splits are a wash
Dividends are just a withdrawal from your existing investment ..it doesn’t come from the air .
It comes from forced selling by the company of your investment …it is no different than any of us selling in a downturn on our own .
This is one of the most misunderstood aspects of investing it seems….you are always behind the curve taking dividends then you would be if you gave them back the money they gave you because taking dividends are a withdrawal method.
They are just as effected by price movement as any other investment…there is no such thing as it doesn’t count