When invest in stock market, why are people so hard up over dividends?

[wahkao]

It should be read as "should not offer dividend". Sorry for my mistake.

In reality, such company rarely exists or only exists for a short period of time, which makes no long term sense.

Still any good profitable company should distribute dividend. Without a dividend, more than 90% companies should be just avoided. I think your friends have better financial sense than you.

Please take a look at UOB, OCBC, SPH, SIA Engg, Sats, M1. These are good examples of dividend stocks. What left pocket to right pocket? If these companies are not making $ yr after yr how are they going to pay sustainable or increased or special dividend? Yes xd price dropped, after xd price How? Please check for yourself.

i am not talking about profitable companies who give dividend, share buy back or special dividends when they should. Those are healthy signs. I absolutely agree with companies doing this.



I am talking about how people so easily misled into using dividends as a performance metric. Where profitability, ROE and ROA are much better metric.

I am also talking about indebted companies who give dividends, share buy back or special dividends when they should not! For example, companies who give dividends when they have high debt(and the interest rates on those debts are high). And companies who give dividends followed by rights issue.