RE: DIvis18 Feb 2025 14:06
Divis are ok but is it only me that sees it as a false economy? Divis are paid out of capital, this. Theory reducing sp. Therefore capital growth has to outweigh the amount paid out or committed on ex div day. Surely debt reduction with associated interest costs is a better option? I understand that institutions may have to buy in on a 1 or 2% divi but surely not that much when there are many more higher paying divi FTSE 100 stocks (albeit possibly without the capital growth potential). Or am I missing something?