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Edit: (Some) Stocks that don’t pay dividends still pay you. Most stocks now don’t pay dividends. Either they reinvest in the business (growing the stock’s value
by thisisnico 5y ago
Edit: (Some) Stocks that don’t pay dividends still pay you. Most stocks now don’t pay dividends. Either they reinvest in the business (growing the stock’s value) or buyback shares with extra cash, (alternative method to dividends as they’re returning value to you the shareholder.)
- ISL 5y agoI'd preface that first sentence with "Some". Some stocks that don't pay dividends (or buybacks, or reinvest) straight-up consume investor's capital.
- DennisP 5y agoEthereum will effectively do share buybacks starting in July. They're switching to a system that burns the majority of transaction fees. If share buybacks are equivalent to dividends, then arguably this is equivalent to paying dividends to ETH holders, funded by the fee revenue paid by users.
- imtringued 5y agoYes, this is fine because the person paying for it is aware where the money ends up and the people who receive it know exactly who is giving it to them. With pump and dumps it is often not known who the beneficiaries are.