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FWIW there is essentially no historical evidence that stocks that pay more dividends are more "rational." Stocks likes TLSA and TWTR have high multiples becau
by harryh 8y ago
FWIW there is essentially no historical evidence that stocks that pay more dividends are more "rational."
Stocks likes TLSA and TWTR have high multiples because they stand a decent chance of having a lot of growth in the future, they have a lot of volatility because that growth is uncertain. These are fundamental facts about their business that wouldn't go away if they squeezed out some sort of token dividend.
- liveoneggs 8y agoassuming you mean tesla- they couldn't pay dividends because they have massively negative EPS. twitter, surprisingly, is actually showing a positive EPS (is that new?) although the P/E is > 100 so, again, a dividend would be pretty small. at least apple is paying out these days.
- harryh 8y agoA positive EPS isn't a requirement for paying out a dividend though of course it's usually a pretty good idea.
- liveoneggs 8y agolol