I think people have different perspectives on trading, for me I manage my account and risks better in the form of cash flow. I use dividends to help finance put buying, while selling various spread premiums to kick up the cash flow. I use the net positive to pay bills or personal debt. I have a limit on net long delta at all times. When there is a crash, my account stays the same or goes down slightly, my cash balance goes up, rinse and repeat. Instead of focusing on profits, I focus on maintaining the machinery to pay bills.
"Instead of focusing on profits, I focus on maintaining the machinery to pay bills." Build your machine! "A man's learning dies with him; even his virtues fade out of remembrance, but the dividends on the stocks he bequeaths to his children live and keep his memory green." -- Holmes
Very nice! One problem. With the advent of the computer, business gets more and more competitive, the days of bricks and mortar corporations are dying. Anyway....while I was typing this out thought to myself "The rise of the shining stars...Amazon must pay a profit?" .... There you have it....
only certain stocks can gain 1-2% per day because someone is providing the liquity, but once the music is stopped, and that someone pulls the rug below, then look out. one would see 10-20% ugly gap-down. not everyone in the markets is the same in terms risk tolerance, pschological makeup, background, and age... Wall Street would want to cater to its customers' needs or create incentive to attract money to get the market machine moving. last year, SP500 companies paid $500 billion in dividend. Companies across the world paid $1.4 trillion in dividend. I think dividend is only the real wealth being created by the markets, everything else is just illusion except treasuries , or perception of wealth, propped up by new money coming in. When mud hits the fans, the illusion of wealth would be evaporated. https://www.barrons.com/articles/gl...mpanies-increased-their-dividends-51581944402 https://www.streetinsider.com/Divid...Dividends+in+2019,+a+New+Record/16308696.html