Came across this twitter discussion that’s worth sharing. I’m a huge believer in dividends, and almost never invest in anything without one… but a company’s dividend (other than it’s existence) isn’t a reason to invest.
Retail locations are being closed, malls sit empty.
While one twitterer points out that Macy’s stock would be worth less (worthless?) without it’s dividend, Josh Brown smartly points out that shareholders might have been even better off if Macy’s had figured out how to use that money to compete instead.
Not sure. Maybe instead of paying that dividend all these years and aiming for single digit growth comps, should have built an Amazon. https://t.co/PDaBQv0GrR
— Downtown Josh Brown (@ReformedBroker) March 26, 2017
Make sure you know more than just the dividend yield before you invest in any company.