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You care about dividends because they create an artificial bottom to where the stock could possibly dip to. As the stock price drops the dividend percentage increases so this creates a greater interest in buying the stock thus preventing it from further dropping. Its also a way of you getting a return on your investment without having to pay broker fees to sell your stock.

Case in point RCII  Rent a Center ~~ um the old Renters CHoice has never paid a dividend  so if you held this stock for the past 5 years and had you invested 10,000

according to the recent S & P report on RCII your 10k investment would be worth only 8K and you would have gotten nothing in the meantime other than the opportunity now to sell your 10k investment for only 8k now...

Had you gotten dividends say 4 dollars a year, you would have profited and made with your dividends and stock more than 10k

Also after a while the dividend pays for your investment so you then have an investment paid for by the house.


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