In this episode of The Franks Report, we break down one of the most persistent myths in retail investing: the idea that dividends are "free money."

While getting a regular payout from your portfolio sounds ideal, many investors don't realize that a stock's price drops by the exact amount of the dividend on the ex-dividend date. We explore the mechanics of corporate cash flows, total return vs. yield, and why chasing high dividend yields can trap investors in underperforming assets.

In this episode, we cover:

• The Mechanics: What actually happens to a stock's price on the ex-dividend date.
• Total Return vs. Yield: Why income shouldn't be confused with net profit.
• Dividend Traps: The dangers of yield chasing and capital degradation.
• The Theory: A practical look at dividend irrelevance and corporate capital allocation.

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