OTCPK:TNGZF - Post by User
Comment by
clm128on Sep 09, 2015 9:29pm
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Post# 24091214
RE:RE:RE:RE:Good News
RE:RE:RE:RE:Good Newsgeneraldisc wrote: clm128 wrote: i dont think a divy increase is coming anytime soon, and i think the second successful exit would have been better if it was not a buy out. I suggest you put your divy on a DRIP and let it accumulate cheap shares, time and more successful exits will bring this up. its still a good growth pick.
I agree that dividend increase anytime soon is unlikely.
Also, dividend increase seldom moves the stock up appreciably.
There may (or may not) be a temporary pop, but it soon settles back.
Dividend is basically taking money out of the company and distributing to shareholders.
It does not increase the value of the company.
the dividend dosnt increase the value of the company directly but it lowers your oppertunity costs of holding the stock. It also allows for a greater return on investment which is built into the price of the stock. If the divy is 6% and is raised by 20% the share price should re adjust until the divy is back to the original 6%, all else staying equal. In short a divy increase shows the company is doing well and moving from a speculative growth stock to an established succesfull company, which warrents a price increase