3 ms·

Its all about growth. Dividend at best helps offset some costs, for sure, but really, its betting on growth, or at least it has been for a long time.

• netcan 18y ago
  Well then there's the strange thing. As you say, almost no company is issuing dividends that in themselves justify share prices so it's all just betting on growth. Does that mean that rational people are betting on the growth of virtually all (existing) companies?
  • khafra 18y ago
    Some presumably rational people are betting on the growth of any particular company. Most rational investors go with mutual or index funds, which bet on the growth of the majority of a certain list of companies, or type of company. In the history of the stock market, this bet has never failed over any given 20-year period, even the one starting in 1928. Of course, the stock market's never before been faced with such a huge influx of stock-owning retirees, or plausible peaks in energy and some metals--without which growth as we know it can't exist--so you pay your money and you take your chances.
  • michaelneale 18y ago
    yes it is a strange thing. I guess there just has to be One More Sucker to liquidate your stock too... having said that, a lot of old school companies (at least here) pay good dividends still - so there is a class of "dividend" stock versus growth stock - although some growth is still expected.