4 ms·
In theory, you are paying for the future dividends. https://en.m.wikipedia.org/wiki/Dividend_discount_model https://en.m.wikipedia.org/wiki/Dividend_discount_m
by supercanuck 8y ago
In theory, you are paying for the future dividends.
https://en.m.wikipedia.org/wiki/Dividend_discount_model https://en.m.wikipedia.org/wiki/Dividend_discount_model
In reality...
https://en.m.wikipedia.org/wiki/Greater_fool_theory https://en.m.wikipedia.org/wiki/Greater_fool_theory
- betterunix2 8y agoActually, in the case of Apple, they announced a sizable share buyback earlier this year, so even if you only plan to hold the stock long enough to sell it for a capital gain you might still be receiving a dividend. AAPL is one of the worst examples of the greater fool theory at work, given that Apple pays a regular dividend, buys back stock, and has a relatively low P/E ratio for a tech company.