RE:RE:RE:RE:BuyersYes, I tend to agree on that point. There are many retirees of which I am one of them
who are desparate for income. Consequently, they can easily fall into the trap with
such an enticing dividend and payout ratio without realizing the full picture. Sadly
their understanding of how these splits trade is lacking. Understanding the implications
of premiums and discounts from NAV is of utmost importance and one needs to be
fullly educated to these aspects before jumping in.
As a side note, I have had to learn this stuff myself over time despite being in the
market for years. Splits were a new thing for me once I retired and started looking
for monthly income. I did really well at first and happened to get lucky until things
went south. That's when I began my real education. That said, I'm sure there are
also plenty of my generation who know quite well what they are doing so its ultimately
a mixed bag of investors who play with them.