Reply To: opinions please what is the better dividend: Pay out in ASSET or pay out in NHZ?


Horizon: 0.00 HZ
27th November 2014 at 6:33 pm

Personally, I think HZ payouts makes the most sense. The HZ payouts will always have far more intrinsic value than the paired asset, regardlesss of what asset it is, since HZ can be asset-swapped at any time.

One profit model that would actually work with an asset-payout is that of an extended loan. EX: raise initial funding, issue shareholders more shares over time as the asset gains value (gains capital, equipment, etc) then determine a time period at the end of which all shares get bought back by the management. Of course for this model, I would make the trade-in HZ value the same as the buy-back, thus. meaning inveator profits will come from newly issued shares.

A big issue with this buyback model as opposed to something that pays out weekly, is there is far greater risk. For weekly payouts, legitimacy is verified each week; if investors get paid, then that means the asset still has some kind of worth. For a time delayed buyback, you have no guarantees and no views into the futute; anything can happen and make the buyback impossible.