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RE: LeoThread 2025-01-14 12:17

in LeoFinance22 hours ago

Part 4/11:

While many investors see dividends as a bonus, it is crucial to scrutinize what they represent. Generally, dividends can be interpreted as a transfer of value rather than new value creation. When a company pays out dividends, it is redistributing its retained earnings. Consequently, while the shareholder receives cash, the company's valuation diminishes by the cash amount distributed. The implications suggest that investors merely access their investments instead of acquiring free funds.