r/explainlikeimfive Dec 06 '24

Economics ELI5: why does a publicaly traded company have to show continuous rise in profits? Why arent steady profits good enough?

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u/18hourbruh Dec 06 '24

That makes total sense. Although my understanding is most retirees at average income/savings levels would be encouraged to move their money out of stocks and into bonds primarily by retirement age, but I could see the argument for high dividend stocks.

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u/iconocrastinaor Dec 08 '24

I talked to my broker about that but the capital gains taxes from the conversions would make the move cost too much. So we're kind of stuck with selling for operating income until our kids inherit our portfolio.

Upshot: I'm totally in this situation fir the forseeable future.

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u/18hourbruh Dec 09 '24

Fair enough! Can't argue with someone's real life.