Dividend Returns for MB and PB



  • Hi guys, I am the first to say I am not convinced with the dividends returns. I am however curious to know who thinks differently. New traders and anyone else, are you happy with dividends being handed out compared to player prices?



  • @HappyLarry59855 no, just see them as a little bonus now. More interested in capital gains - selling shares in the big guns at the moment as much more value elsewhere.



  • You see, it's this kind of chat that scares me about the index. It's not hard, with a tiny bit of research, to buy players that will almost certainly return 10-20% over a year of trading. Where else can you get that kind of return? But because we've been treated to bitcoin-esque capital appreciation for three years now people think that a 10-20% dividend return is measly.

    So what happens when the capital appreciation slows down (which it will inevitably do)? My fear is it could end up being carnage in terms of capital values, because everybody expects incredible returns of 50%+.

    I think FI are going to have to at some point start an expectations management job. Not for quite a while yet, because I think there is a lot more growth in this market, and I think that dividends will be raised further. But growth can't go on forever!



  • @Willie-Mink If prices collapse because gamblers feel capital gains are too small then dividend yields shoot-up...so investors (not gamblers) buy back in. Then off the back of that small-medium rise, gamblers pile back in hoping to make big capital gains again.

    Should all be fine. But i expect if there is long term stagnation then FI was just manually increase yields anyway



  • @HappyLarry59855 said in Dividend Returns for MB and PB:

    Hi guys, I am the first to say I am not convinced with the dividends returns. I am however curious to know who thinks differently. New traders and anyone else, are you happy with dividends being handed out compared to player prices?

    To be fair, the dividends were incredibly generous originally. It is traders pushing the prices up that have made them look less generous.



  • @Willie-Mink said in Dividend Returns for MB and PB:

    You see, it's this kind of chat that scares me about the index. It's not hard, with a tiny bit of research, to buy players that will almost certainly return 10-20% over a year of trading. Where else can you get that kind of return? But because we've been treated to bitcoin-esque capital appreciation for three years now people think that a 10-20% dividend return is measly.

    So what happens when the capital appreciation slows down (which it will inevitably do)? My fear is it could end up being carnage in terms of capital values, because everybody expects incredible returns of 50%+.

    I think FI are going to have to at some point start an expectations management job. Not for quite a while yet, because I think there is a lot more growth in this market, and I think that dividends will be raised further. But growth can't go on forever!

    Historically the stock market if left long term has returned about 10 percent per year and FI has to be considered higher risk so you would expect the yields you are talking about if you are investing as opposed to considering it a gamble.

    So really prices are probably about right now, if the index keeps on growing though it will look over valued. It depends what direction FI want to go in. Prices were far more over valued before PB though so the market probably can support over priced players.



  • @mike778 That's because traders are buying the players and then keeping hold of them, rather than buying and selling regularly. I think that is why goal and assists was introduced to encourage more short term trading.



  • @Willie-Mink well I've not been here long and hold no unrealistic expectations. Just judging on what I've seen in recent weeks and have concluded my money might work harder away from the big boys. I agree research is key and prepared to work for my rises.


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