You're right back to square one; trying to predict if a stock's price is going to go up or go down,thousands/millions of traders try to do that every day. Until it climbs back above your entry price you haven't made any profit.
Yes you have lol...everything you collect is income. If you are just trading a regular stock you make ZERO while waiting for a recovery. This is why you guys are broke. You don't go selling your house just because it drops 20k lol. You just keep collecting rent. BTW dividends aren't square one if square one is predicting where price is going because with dividends it doesn't matter.
It's not income,it's just your own money they are giving you. Where do you think they get the money to pay you that dividend? They get it from you. And others investors who own the stock.
If I'm not shrinking my position how is it my money? lol. Is the rent you are getting from tenants coming out of your capital? By your analogy, buying a stock and selling 5% every quarter and calling it yield would be the same as a dividend...it is not.
Overnight when the dividend was paid the stock's price was reduced by the amount of the dividend so your 10,000 worth of stock is now only worth 9,400. Plus the 600. they gave you(dividend).
Yeah short term...it's a knee jerk reaction and recovers after that...last dividend it dropped $1.20 to like 15-16 and fully recovered and resumed tracking Bitcoin again currently at almost 20. After a stock goes ex-dividend, the share price typically drops by the amount of the dividend paid to reflect the fact that new shareholders are not entitled to that payment. Dividends paid out as stock instead of cash can dilute earnings, which can also have a negative impact on share prices in the short term.
How do you know it's going to recover,do you have a crystal ball? Investors who bought 500 shrs BITO on mar 28 at 32.50 have seen their 16,250 investment shrink to 9,940. Even with approx $3760 worth of dividend payments they've collected they're still way underwater.
Wrong, anyone and everyone is entitled to that payment as long as they own the stock the day before it goes ex-dividend.
I've only done "informal" backtesting on dividend capture strategies and I've personally found it to be a 50/50 crapshoot. But like anything else there's probably guys out there who have found ways to make money doing it.