ATVI: What a Difference a Dividend Makes!
Dividend???? Did someone say Dividend???? Oh right... I am well aware of just how shockingly there are lots of investors out there that don't get excited and happy over a company announcing any kind of Dividend payment for the first time.
There seriously is a group out there that thinks.... "Once a company introduces a dividend, that means there is no more growth in the company's business."
But? What a difference a Dividend Makes when a stock like (ATVI) not only introduces a dividend... but makes it exactly priced the same as (DPS).
(DPS) == My Biggest Investment in my Portfolio in terms of $$$$s.
(ATVI) == Third Biggest Investment in terms of $$$$s.
Can you guess what will happen now that ATVI has a dividend?
Well.... Take a look at the share price difference in those 2 stocks above.... Same dividend amount but based on a drastically different PRICE to pay for it...
And therein lies the real TRUTH behind the power of Dividend Investment versus NON-Dividend Paying Companys.
If you are a long term BUY and HOLDER like me.... ( and that does not mean 100% buy/hold as I reserve some cash for trading in and out of other stocks)...
Then what you will do is you will pour your money into whatever stock you have that has the highest dividend yield.
DPS dividend yield is 2.24% @ over $26.00 per share.
ATVI dividend yield is roughly 5% @ just under $10.00 a share.
The money goes to ATVI..... all of my money will now be targeted in accumulating ATVI shares.
It will it will it will....... because I get more DIVIDEND bang for my buck with ATVI...versus DPS.
And that's why... Dividend is far better than Share Repurchase programs. FAR BETTER!
And NO!!! If introducing a dividend spells DOOM to a company's growth potential then why didn't Coca-Cola get rid of their Dividend a decade ago?
DISCLOSURE: I own DPS shares and ATVI shares.... I do not own Coca-Cola shares.