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I suspect that if these companies did declare dividends, they would be effectively announcing to the market that they didn't expect to be growing very much. An
by sethg 18y ago
I suspect that if these companies did declare dividends, they would be effectively announcing to the market that they didn't expect to be growing very much. And then investors would dump the stocks, because the high P/E ratios can only be justified by an expectation of future growth.