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Yes. Any public company must ultimately pay a dividend to be valuable. Edit: All of my responders are ignoring my use of "ultimately". A company can certainly
by brucephillips 9y ago
Yes. Any public company must ultimately pay a dividend to be valuable.
Edit: All of my responders are ignoring my use of "ultimately". A company can certainly invest in growth, but growth only matters if the company eventually returns money to shareholders, and the only way to do that is a dividend.
- edpichler 9y agoNo, as I explained up here. It can use the money to grow.
- plaguuuuuu 9y agoif there's no expectation of dividends ever being paid, the share price should be 0
- edpichler 9y agoAlso, some companies pay dividends, and after make loans to the bank (paying interests), to do investments.
- 1stranger 9y agoFalse. Berkshire Hathaway has no dividend.
- tonyztan 9y agoBerkshire Hathaway (Warren Buffet's company) is valuable yet does not pay dividends. https://www.investopedia.com/ask/answers/021615/why-doesnt-berkshire-hathaway-pay-dividend.asp https://www.investopedia.com/ask/answers/021615/why-doesnt-b...
- testfoobar 9y agoNot true - another way to return money to shareholders is to buy back their own stock. https://www.bloomberg.com/quicktake/buybacks-dividends https://www.bloomberg.com/quicktake/buybacks-dividends