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They could achieve good multiples by paying dividends. The question is whether they're wasting as much money trying to grow as they are saving by keeping their
by caoilte 5y ago
They could achieve good multiples by paying dividends. The question is whether they're wasting as much money trying to grow as they are saving by keeping their profits offshore (and not paying tax on them). I don't know, but at some point the answer may become obvious.
- lotsofpulp 5y agoOwners do not want dividends. I do not want dividends from my tech stocks if I’m simply going to turn around and reinvest in them. That is just paying extra short term capital gains taxes when you do not have to.
- sokoloff 5y agoQualified dividends (which represent the vast majority of them) are taxed as long-term capital gains to avoid this concern.
- deleted 5y ago[deleted]
- lotsofpulp 5y agoTrue, but it does not seem like investors are clamoring for dividends either way. Personally, I would just take the dividend money and reinvest it so it’s all the same to me.