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The simple answer is that if a stock is expected to never pay any dividends, it's intrinsic value is zero. Note that from shareholders' perspective, paying div
by my50cents 5y ago
The simple answer is that if a stock is expected to never pay any dividends, it's intrinsic value is zero.
Note that from shareholders' perspective, paying dividends is economically equivalent to share buyback, plus some tax considerations, so there are exceptions.
- hiq 5y ago> The simple answer is that if a stock is expected to never pay any dividends, it's intrinsic value is zero. Which is obviously wrong, right? Any company that has liquid assets (and no debt) is at least worth the selling value of these assets, even if it doesn't pay dividends. So I'm not sure your model helps here.