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This. All these tech companies have reached saturation, but at the same time they are profitable. I guess investors want upward returns because they expect more
by accurrent 4y ago
This. All these tech companies have reached saturation, but at the same time they are profitable. I guess investors want upward returns because they expect more money than they put in.
- ascagnel_ 4y agoI think this is a case where mature tech companies (ie: FAANG/MS/etc.) should look at paying dividends rather than relying on solely on stock growth. But paying dividends is a whole different, tax-disadvantaged mess compared to pure growth, so there needs to be some tax and regulatory adjustments.
- lotsofpulp 4y agoWhat difference does it make from a shareholder perspective if a business pays dividends or does share buybacks, other than the fact that share buybacks defer tax liability?
- SuoDuanDao 4y agodividends allow you to diversify without selling the stock.
- hgsgm 4y agoStock buybacks allow you to choose when to diversify instead of only doing it at the company's convenience.
- matwood 4y ago> defer tax liability Which can be a big deal. It also lets the shareholder control when they take on the tax liability.
- greedo 4y agoApple pays out dividends...
- bagacrap 4y agoas does Microsoft. Even NVDA pays a dividend albeit tiny.