I know absolutely zero about this stuff. Please treat me like I am 5.
Basically, my friend said that if you buy shares in a company that pays dividends, then that company will still pay you the same regardless if the value of that share goes up or down.
He used a hypothetical example of if Coca Cola was priced at $10 per share (I wish) and if I was to buy 1 share for $10, and they paid dividends at a rate of $1 yearly, then after 10 years of owning that share I would be making $1 profit yearly and that would never change unless I sold it or the company went bankrupt.
I basically just wanted to know if he’s talking out his ass or not before I start researching how all this stuff works myself.
Submitted April 13, 2019 at 08:01AM by Stewbo_ http://bit.ly/2UbD3tT
