1 Answers: Why does Ford pay dividends but Tesla does not?

Question

I hope you understand that you do not gain or lose anything from dividends.

When a dividend is paid, the value of the stock decreases by that precise amount, and you end up with the same value in the total of stock and dividend.

If there is no dividend and you need some cash now, you can sell some shares of your stock with the same result as having a dividend – you end up with the same value in the total of the remaining stock and the money from your sale. —– —– —– As a stockholder, you are part owner of a business. Your earnings come from your business earning a net profit. When you receive a dividend, that money is in your pocket where it is no longer earning money for you.

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Anonymous 8 months 1 Answer 74 views 0

Answer ( 1 )

  1. Because Ford is a real solid company that earns a profit and Tesla is a pie in the sky dream which losses money. The world is upside down right now because Tesla also holds a higher market value, go figure?

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