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Re: Zeev Hed post# 326589

Wednesday, 11/24/2004 5:52:25 PM

Wednesday, November 24, 2004 5:52:25 PM

Post# of 704044
I am thinking about this dividend thing. On the ex-div date, the stock was adjusted by the amount of the dividend to recognize that stockholders have something of value. However, if that money does not go back into the market, then the markets lose, don't they? In order for the market capitalization of the qqq and the SPY and DIA to stay the same, for instance, the dividend has to be funneled into QQQ, SPY, and DIA stocks. It seems to me that any movement of the dividend into anything else other than MSFT is a loss to MSFT and putting the money anywhere else than QQQ stocks is a loss to the QQQ.

This is not an opportunity to invest, it is an opportunity to re-invest. Anyone who chooses to reallocate their money to places other than MSFT and the indices that it is a big portion of is taking money out.

All of the major inices DIA, NDX, COMPQ, SPX are loaded with MSFT. REallocation by spending or moving the money to things other than similar stocks should be a loss to these indices, shouldn't it?


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