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I notice that modern companies don't pay dividend anymore. They optimize for growth and survival, which makes sense. Google and Apple have so much cash that t
by ergocoder 6y ago
I notice that modern companies don't pay dividend anymore.
They optimize for growth and survival, which makes sense.
Google and Apple have so much cash that they wouldn't really need to make money for years, and they would still survive.
Paying dividend is kinda okay, at best. Buying back stock is a bit better. The best is to just keep th cash.
Don't get me wrong. As a shareholder, I like it. But it's bad for the company.
- mrep 6y agoWhat? Most companies do return money to shareholders and for your 2 examples, Apple returned 81 billion dollars to shareholders last year [0] and Google started a 25 billion dollar buyback last year [1]. [0]: https://www.barrons.com/articles/apple-stock-buyback-dividend-earnings-multiple-yield-51578342838 https://www.barrons.com/articles/apple-stock-buyback-dividen... [1]: https://www.businessinsider.com/google-2q-earnings-beat-stock-price-reaction-25-billion-buyback-2019-7 https://www.businessinsider.com/google-2q-earnings-beat-stoc...
- ergocoder 6y agoBuying back is still better than dividends. Because you get stocks back. The point is companies now save a lot of money for growth and survival.