Dividend is not “free money” from a company.
When a company pays a dividend, part of the business value is effectively transferred to shareholders as a payout.
That’s why I don’t look at a high dividend yield separately from the ex-dividend date and the stock price itself.
For example, if a share costs $100 and a dividend of $5 is announced, it looks like a 5% yield.
But if, after the ex-dividend date, the price drops by roughly the amount of the payout, the mechanism looks completely different.
For bStock, I would check four things:
— the dividend amount;
— the ex-dividend date;
— who actually receives the payout for the product;
— how the corporate action is reflected in the token.
The last point is especially important.
Tokenized exposure to a share doesn’t automatically mean that all the owner’s rights are fully identical to direct ownership of the share.
So “a 5% dividend” for me is only the beginning of the investigation, not a final yield.
#bStocksCIS @BinanceCIS
When a company pays a dividend, part of the business value is effectively transferred to shareholders as a payout.
That’s why I don’t look at a high dividend yield separately from the ex-dividend date and the stock price itself.
For example, if a share costs $100 and a dividend of $5 is announced, it looks like a 5% yield.
But if, after the ex-dividend date, the price drops by roughly the amount of the payout, the mechanism looks completely different.
For bStock, I would check four things:
— the dividend amount;
— the ex-dividend date;
— who actually receives the payout for the product;
— how the corporate action is reflected in the token.
The last point is especially important.
Tokenized exposure to a share doesn’t automatically mean that all the owner’s rights are fully identical to direct ownership of the share.
So “a 5% dividend” for me is only the beginning of the investigation, not a final yield.
#bStocksCIS @BinanceCIS