Gaming

19998 readers

118 users here now

Sub for any gaming related content!

Rules:

1: No spam or advertising. This basically means no linking to your own content on blogs, YouTube, Twitch, etc.
2: No bigotry or gatekeeping. This should be obvious, but neither of those things will be tolerated. This goes for linked content too; if the site has some heavy "anti-woke" energy, you probably shouldn't be posting it here.
3: No untagged game spoilers. If the game was recently released or not released at all yet, use the Spoiler tag (the little ⚠️ button) in the body text, and avoid typing spoilers in the title. It should also be avoided to openly talk about major story spoilers, even in old games.

founded 5 years ago

MODERATORS

[email protected]

215

Phil Spencer blames capitalism for games industry woes: 'I don't get [the] luxury of not having to run a profitable growing business' (www.pcgamer.com)

submitted 7 months ago by [email protected] to c/[email protected]

119 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 1 points 7 months ago (2 children)

Growth is more valuable than dividends

Shouldn't that depend on the dollar amounts? Why would $X of dividends be worse than $X of stock growth? And if growth just isn't in the cards anymore, it would be in reality a worse bet as the companies pour resources into a black hole of false hope and self sabotage seeking something that isn't actually going to happen.

[–] [email protected] 3 points 7 months ago (1 children)

You don’t pay tax on growth, you do on dividends. For large shareholders a high dividend can be a problem. Even for me, a very small time retail investor, I have to keep a balance of growth (like Apple) and dividend (I tend to use a dividend ETF so I can fairly reliably estimate my dividends) so I can avoid paying tax on the dividends.

[–] [email protected] 1 points 7 months ago

That makes a lot of sense. Seems like the way taxes are set up is creating perverse incentives here.

[–] [email protected] 2 points 7 months ago

Growth stocks rise more because they carry more risk than steady dividend payouts. In a perfect dividend world, dividends would match growth, but because there is inherent risk in growth stocks there is a larger upswing

There are competing schools of thought in the investment world, and Growth has solidly beaten Dividend investing. Even better, going for a market-weighted global index fund is best.