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In the Month of November FTSE Stock Indices was slipped because of the fact that many of the stocks went ex-dividend so there was a drop in trading in UK. Some days ago I came across an article written by Matthew YGlesias saying that dividends are evil for the economy as they do nothing for the economy and just provide the short term gains. Here is some quote from that article.

The only problem is that dividends are terrible. Bad for the economy, bad for business, and surprisingly unfavorable to investors.

If you buy a GE stove, then GE gets your money. If you buy shares in GE, then GE doesn’t get anything. If your stove is defective and you get a refund, that is returning money to customers. If GE has cash lying around and hands it out to shareholders, that’s not returning money to customers—that’s a windfall.

But, I simply do not believe in this theory I think there is no harm if a person thinks about short term gain, Stock Dividends Moneymight be a possibility that they are more suitable for him. Also, when there will be no dividends perhaps nobody from us will be investing the money in FTSE Stocks, perhaps economy will be more down as you can see what happen when most of the FTSE Stocks were gone ex-dividend, FTSE 100 Slipped in November. It’s a human nature that he expects in return whenever he invests anything. Even if we invest our time on somebody we expect that it will bring us good results.

Suppose a corporate company is investing their precious time on a trainee employee just on the hope that after some time he will be giving them profits. It’s actually the fundamental things and business are run only on profits. If expecting dividends is wrong then the money which we put in stocks should be referred as donation or contribution simply as if it will be investment, there will be clear expectations to get good returns over that investment.

I just favor returns on investment neither favoring dividend nor favoring long terms profits in FTSE and that’s not a wrong thing to do. Today it’s a tendency that investors depends on either best dividend paying stocks in UK or high dividend yield stocks in FTSE. Some sort companies on the basis of high dividend yield and some filter on the basis of their possibility of being ex-dividend as soon as possible. They choose companies which are already on the peak because of the fear they have of having loss in FTSE Stocks Market. Investing in Blue chip stocks is not bad though but there are other ways also besides FTSE 100 to earn high dividend profits like you can earn equally best dividends from UK stock which are streaming outside FTSE 100. Facts suggest that smaller company have a lot more and enough scope to generate dividend growth then mid cap or large cap stocks in UK just because of dividend cover. FTSE 100 Stocks generally provides dividends max of 1 or 1.5 and Small-cap stocks can provide you dividend yield of 10 -15% max usually sticking around 5-6%. Also try to buy such stocks in Small-cap or mid-cap indices in FTSE Stocks in UK which are going to ex dividend soon before somebody else buy them.

Related Tags: FTSE Dividend DatesFTSE DividendDividend Dates UKFTSE 100 DividendsFTSE Dividend YieldUK Dividends

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