The so-called dividend looks like a money-cheating game here: say you pay $100 cash to the company first. Then it issues 100 shares of paper certificates ($100 worth of shares at issuing time) to you plus fractional reward $5 cash (the dividend). In the same time it issues more paper certificates to the others and so on... Finally you could get $50 cash rewards plus 1,000 shares of paper certificates after you have done the same thing ten times. But those paper certificates (the shares) only worth $100 at the redeem time (market value of 1,000 shares) due to the huge and rapid dilutions. Thus you paid $1,000 cash out to buy the stock but you can only get $150 back! Is this a win game to any buyer here? The answer is: "no", only the company wins! All the investors end up losing big money which is the typical huge dilution game does to the buyers...
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