The Myth Of Dividends

I very recently created a bit of a fuss over my recent article, "I Don't Understand Dividends." Based upon comments received in some earlier articles about Apple (AAPL), it appears that it would be a terrible idea -- in terms of personal safety -- to ever write an article suggesting that Apple should discontinue its dividend. The response would truly be a good example of compounding, which apparently is something that I'm said to not understand. But then again, can any of us truly understand a miracle? In the recent article about dividends, the intent was to demonstrate a technique that may sometimes be used to exploit an inefficiency in option premium pricing. That inefficiency can serve to offset some of the share price drop that accompanies the distribution of a dividend. My opinion is that dividends themselves are simply illusory benefits, rather than real added value. You simply take... Read more