This is all correct, but missing the higher order. Most investors will not take out the dividends, but reinvest them. A few might sell, because they are in retirement. But assuming that the retired people make up a small part of investors, profit is reinvested. Further, people invest a percentage of their income for retirement. All that means that work income and dividends make the stock prices go up and retirement makes the stock prices go down. You could say that retired people consume and help companies make profit, but it is actually worse for stock prices than investment, because the consumption requires companies to sell products and services that come with cost.
