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blackbootz · 2525 days ago · link · · parent · post: What is a post you have made that didn't get the discussion you were hoping for?
I don’t quite know how to phrase this, but if GM stock pays such a “risk-less” premium, what’s the mechanism by which the GM stock starts to become less valuable? If this information is publicly available, why isn’t everyone buying such dividend paying stocks? Is it that the influx would drive the price up and then the dividend would represent a smaller fraction of the capital used to invest, eventually yielding a return less than the prevailing interest rate?