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“It Has Really Hurt My Long-Term Performance”: Jim Cramer Admits His Own Charity Is Losing Money By Using Wrong Dividend Strategy
['Aj Tiarsmith', 'Wed', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
Quick ReadCramer warned Foot Locker's dividend vanished when cash flow declined, proving dividend stocks demand ongoing vigilance, not a set-and-forget approach.
Cramer's charitable trust must distribute dividends rather than reinvest them, a structural rule he says has really hurt its long-term performance.
"I know that you refer to dividend reinvestment as the 8th wonder of the world, and I'm totally there with you," he added.
"I am a huge dividend reinvestment plan person," he said, adding, "That's, that's, and a matter of fact, I wish there weren't an alternative."
"For my charitable trust I have to send the dividends out and it has really hurt my long term performance," Cramer said.