Dividends are always going to roughly be proportional to risk involved.
This is completely incorrect.
Dividends are for the most part based on free cash flow. 'Price/Earnings ratio are nearly always going to be proportional to the risk involved' - that would be a much more accurate statement. We can observe this by looking at very similar companies (with similar risks) within a sector and see that many have similar P/E ratios. However, within that same sector, you will see a wide range of % earnings paid out as dividends. *Although REITS and other similar investment vehicles will not have a wide range of % earnings paid out as dividends, as law states they must past out 90% minimum.
People need to stop focusing on dividend yield and focus more on earnings. Earnings are what truly matter. This obsession and focus on dividend yields is a common occurrence in both BTC markets and major markets, and it demonstrates a clear misunderstanding of business operations and financial analysis.
If a company is paying out 100% earnings as dividends, then it can get confusing wether to say dividends or earnings. Your point is good, people around here tend to focus too much on the dividend and ignore the growth.
Although, it is understandable that people want to have a high dividend, that way they know the company is not running off with the money.
I agree; dividends are an excellent way for issuers to reward shareholders, and provide a certain level of consistency within a portfolio. Though a high % of earnings paid out in the form of dividends is a concern. High payout percentages restrict the total amount of working capital if the company is going to always maintain their dividend rate.
Though with only 10% (or less as the IPO isn't selling out) of the stock paying out dividends (that we know of), there is still a bunch of income left over. I wouldn't be too worried about that. That doesn't strike me as too much of a concern, the fact that none of the IPO investors will have any say whatsoever in the operation of the company is very troubling to me. That also means there's no check on evoorhees' decisions. He could include his own salary in the "costs", for example, and decide to set his salary equal to 100% of the profits. Nobody could stop him (though it would make the stock worthless).
True. The entire S.DICE offering (like pretty much all btc-based securities) is little more than an extremely vague gentleman's agreement. This is just one a long list reasons why it is drastically over-priced on a purely logical basis.
