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The way it's been explained to me, a company stock that pays regular dividends is basically the company saying "you investors deserve these profits rather than
by etskinner 8y ago
The way it's been explained to me, a company stock that pays regular dividends is basically the company saying "you investors deserve these profits rather than us trying to reinvest it in the company and grow". An example of the exact opposite would be Amazon, who notoriously almost never makes a profit on paper.
- barbecue_sauce 8y agoWhile that's historically true about Amazon, they have switched to "profit mode" in the past few years, and their net income has grown incredibly.