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In theory yes, that's essentially the dividend discount model of stock value.
by gcheong 16y ago
In theory yes, that's essentially the dividend discount model of stock value.
- gwern 16y agoBut is it correct? I mean, AAPL is priced sky-high along with Google, and it apparently last paid out any dividends 15 years ago (http://finance.yahoo.com/q/ks?s=AAPL http://finance.yahoo.com/q/ks?s=AAPL). What on earth dividends are people expecting in the future to push the share so high, especially considering that Apple has said nothing whatsoever about any planned dividends? (And at 9B in profit according to Wikipedia, it certainly could if it wanted to.)