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Phil Spencer blames capitalism for games industry woes: 'I don't get [the] luxury of not having to run a profitable growing business' (www.pcgamer.com)

submitted 9 months ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 9 months ago (2 children)

Growth is more valuable than dividends

Shouldn't that depend on the dollar amounts? Why would $X of dividends be worse than $X of stock growth? And if growth just isn't in the cards anymore, it would be in reality a worse bet as the companies pour resources into a black hole of false hope and self sabotage seeking something that isn't actually going to happen.

[–] [email protected] 3 points 9 months ago (1 children)

You don’t pay tax on growth, you do on dividends. For large shareholders a high dividend can be a problem. Even for me, a very small time retail investor, I have to keep a balance of growth (like Apple) and dividend (I tend to use a dividend ETF so I can fairly reliably estimate my dividends) so I can avoid paying tax on the dividends.

[–] [email protected] 1 points 9 months ago

That makes a lot of sense. Seems like the way taxes are set up is creating perverse incentives here.

[–] [email protected] 2 points 9 months ago

Growth stocks rise more because they carry more risk than steady dividend payouts. In a perfect dividend world, dividends would match growth, but because there is inherent risk in growth stocks there is a larger upswing

There are competing schools of thought in the investment world, and Growth has solidly beaten Dividend investing. Even better, going for a market-weighted global index fund is best.