Unpopular Opinion
Welcome to the Unpopular Opinion community!
How voting works:
Vote the opposite of the norm.
If you agree that the opinion is unpopular give it an arrow up. If it's something that's widely accepted, give it an arrow down.
Guidelines:
Tag your post, if possible (not required)
- If your post is a "General" unpopular opinion, start the subject with [GENERAL].
- If it is a Lemmy-specific unpopular opinion, start it with [LEMMY].
Rules:
1. NO POLITICS
Politics is everywhere. Let's make this about [general] and [lemmy] - specific topics, and keep politics out of it.
2. Be civil.
Disagreements happen, but that doesn’t provide the right to personally attack others. No racism/sexism/bigotry. Please also refrain from gatekeeping others' opinions.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Shitposts and memes are allowed but...
Only until they prove to be a problem. They can and will be removed at moderator discretion.
5. No trolling.
This shouldn't need an explanation. If your post or comment is made just to get a rise with no real value, it will be removed. You do this too often, you will get a vacation to touch grass, away from this community for 1 or more days. Repeat offenses will result in a perma-ban.
Instance-wide rules always apply. https://legal.lemmy.world/tos/
view the rest of the comments
First, I'm not qualified or certified to give financial advice. I can't and won't provide any investing advice... Basically, IANAL, but for investing instead of legal stuff.
So, say I start a publicly traded company called Goople. You buy 10 stocks in Goople for $100 per share. So you have $1000 total in Goople stick now. Since I'm a hypothetical business genius, the stock price quickly grows to $150 a share. You now have $1500 in stock value, but you don't get a check for $500... you just have an asset that has grown in value. If you want to get $500 in cash, you'd need to sell some of your shares. Sometimes, you can buy and sell fractions of stocks, but for this example, we'll say you can only trade full stocks...so at $150/share, you need to sell 4 stocks for $600...you're broker will take a cut and you'll likely have to pay taxes on that $600 so we'll say you end up netting $520. Now you have some cash, and you have 6 shares of stock left. Now, originally, the stock going up $50 meant you made $500 dollars (increase in stock value x shares held). Now, if the stock goes up another $50....you only make $300 because you only have 6 stocks left. Now, even if the market rate stays the same, your absolute earnings have decreased. This is what makes selling stocks to love on untenable... the more stocks you sell, the slower your returns grow. Dividends are when the company pays you a quarterly or annual payment based on the stocks you own and the performance of that stock, even if you never sell a share. If the company has a bad quarter or year, you dont get paid either...sonif you're trying to survive off dividends, you (or your broker) need to pay WAY more attention to the company's financials and forecast or you might not have enough money to survive. Usually, companies want to pay the lowest dividends they can because dividends come out of the company's profits. Smaller companies that are growing will pay little/no dividends because they want to reinvest that money back into the business to fuel growth. Additionally, many dividend-paying companies are running high debt ratios, so your dividend payments are likely to go down when interest rates increase because the company needs more money to service that debt. Rising intereat rates also make borrowing more expensive for you, so the easiest way to offset those dividend losses - going into debt yourself - is also harder to do.