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what about companies that don't issue dividends or stock buybacks? does that mean that their stock is worthless?
by zht 3y ago
what about companies that don't issue dividends or stock buybacks? does that mean that their stock is worthless?
- boeingUH60 3y agoTraditionally, the aim of buying shares in a public company was collecting dividends every quarter. There are exceptions when shareholders expect a company to lose money in the short term but make enough in the long term to return money back to them via dividends (or buybacks). But tech companies came and changed everything by selling BS visions and pumping their stock high…who needs dividends when I can lose money and still increase my stock price by selling the latest fad to investors, e.g., Uber. Personally, I think we should revert to the previous system.
- zht 3y agoIf you took a basic finance course you’d see that they are equivalent…