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Stocks with no dividends have some probability of paying a dividend (or doing a buyback) in the future. If you could prove that a company will never pay a divid
by umanwizard 9y ago
Stocks with no dividends have some probability of paying a dividend (or doing a buyback) in the future. If you could prove that a company will never pay a dividend or do a buyback then its value would be zero.
- tonyztan 9y agoWhat about Berkshire Hathaway? They said they wouldn't pay dividends.
- umanwizard 9y agoYou don’t know they never will forever. Buffet will die someday and his successor might decide to pay a dividend.
- AznHisoka 9y agothis is turning to a very insane argument.. So if Buffet signs a iron clad legal contract that says no dividends ever for the duration of his company, it means the stock is worth 0?
- umanwizard 9y agoIf such a thing were possible, then yes, it would.