Dividend paying stocks will be pulling from the value of the stock. The 4% you get will immediately drop the value of the stock by 4%ish.

Dividend paying stocks may not be a great option for most US people (and maybe others) unless they are in tax-advantaged accounts. You will be taxed on that as income and not capital gains, which would have occurred if you had a stock that held value and then sold it when you needed to.

In other words, ignoring taxes, in a long-term holding strategy, one would expect reinvesting dividends from a stock to perform as well as if that stock just didn't pay dividends (all else being equal, which it never is).

Though, taking into account taxes, the tax on dividends is effectively compounding annually while capital gains taxes are a simple rate. As long as the dividend tax rate for stocks held long-term is equal to the long-term capital gains tax rate, it's more tax-efficient for investors if a company buys back its own stock instead of paying dividends.

This is also the logic behind end-of-year loss harvesting: compounding interest on tax savings in capital gains losses.

I'm not an accountant or tax attorney.

They do exist. You're either too lazy or dumb to use Google to find them https://www.marketbeat.com/dividends/high-yield/

Anything less than 20% yield is reliable.

"Also inflation isn't over 15% hahaha." I bet you also believe the COVID vaccines are safe and effective too.

They do exist. You're either too lazy or incapable of using Google to find them https://www.marketbeat.com/dividends/high-yield/ Anything less than 20% yield is reliable.

"Also inflation isn't over 15% hahaha." You probably believe Chinese gdp statistics too.

HN is not the place for you to express your alternative reality.

So too lazy and incapable.

Here's hoping you got the safe and effective COVID vaccine!

You're a very pleasant person!

We've banned this account for breaking the site guidelines. Please don't create accounts to do that with.

https://news.ycombinator.com/newsguidelines.html

Please don't respond to a bad comment by breaking the site guidelines yourself. That only makes everything worse.

You did it repeatedly in the current thread, and we already had to ask you this just recently: https://news.ycombinator.com/item?id=34168712. Please stop doing this.

https://news.ycombinator.com/newsguidelines.html

If you want to ban me, fine, but if someone suggests that vaccines (proven to help people and save lives) is a hoax, I'm not going to just stand around.

I'll try to be less rude, but I'm not cursing the guy out or something.

Sometimes, I think, if this was the context of WW2 you'd rather we just ignore the Nazis.

I have read the guidelines several times, Dan! I think they are almost impossible to follow.

I ask you sincerely: Please read through my comments, like the last 50, if you think I'm not a fit for HN, please ban me - because I struggle to fit your mold, I think. I can TRY HARDER (haha, caps - oops! I used "haha!") but I'm never going to be the guy you want me to be, I don't think.

I'm not going to argue with you about this, but people are snarky. They aren't always substantiative, even when they try to be. I definitely never try to personally attack people and would apologize for making that mistake (and I do apologize for making that mistake) I don't personally think saying "bro, check yourself" is a personal attack, but again, lots of this stuff is up for interpretation.

You use the term "community" but what I think you want is a world where people act how you want them to act. That's cool. You guys pay for the site.

Honestly, you have made me feel really bad about HN since our interactions. I have been muted, and the entire thing made me feel worse and worse about the site. The only times I've "personally attacked" people is when they have been really rude to me. And it isn't like I'm saying "GO KILL YOURSELF" I'm saying "you're being ridiculous" - if you put these on the same level, man. That's a tough one.