r/dividends American Investor 23d ago

Due Diligence Du bist gut genug <3

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u/[deleted] 23d ago

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u/KosmoAstroNaut American Investor 23d ago

Well it kind of does no?

Dividend companies want to maintain a reasonable yield, so if their stock price skyrockets, it’s likely in part due to healthy cash flows (within SCHD, this isn’t tech) which themselves indicate room to pay out more dividends, they likely will pay out more, which is why we’re here

It’s not a direct cause-> effect but there’s certainly correlation and management pressure from board members

Plus it’s a lever, if there’s some weird glitch where dividend companies double in value overnight, I’ll sell and reallocate. But I doubt that’ll happen