Hi. The question is why should cash dividend affect initial investment? Example if you invest $1000 and the dividend is $10. Your initial investment stays at $1000 but there may be a MTM impact against the $1000. From a customer's perspective if you deduct the dividend from my initial investment, wouldnt my P&L remain net neutral? This means that the dividend gain is not a gain.Hi
u sure u read my writeup?
Anything that crosses the line of bank account will impact on your net invesmt eg 100
eg u decided to dca $5 so your net invesmt is up by $5 ie 105
if u wdraw $70 out for
Emerg use?!!! Hence your net inv lesser by 70 ie 100-70: 30
If u opted out of divs $15? And that amt goes into bk??! Your net inv is lesser by 15
(But your own bank account is up by 15: the balance sheet of your net worth is alwys balanced)
And it brings another qns, assume I go on a cash payout for 10years, what would my initial investment be based on their logic?
And I have gotten confirmation from their team that cash dividend payout should not affect initial investment. Their team is looking into it and responding by Monday.
Cheers!!!