3 ms·
How well does that utility argument play out when companies see fit to grant 0 dividend?
by peteradio 3y ago
How well does that utility argument play out when companies see fit to grant 0 dividend?
- AnthonyMouse 3y agoIf you buy shares for $100 and they increase to $200 without paying you a dividend, you've still made $100. If you prefer to have $100 in shares and $100 in cash rather than $200 in shares, you can sell half of your shares.
- dragonwriter 3y agoDividends or not are irrelevant, what matters is that the marginal utility of market value measured in monetary terms (or in market equivalent in any other commodity, but money is the most common one for people to mistake for a direct measure of utility) differs between market participants, and for the same participant (relative to others, not just by, e.g., inflation that applies in the same way to all market participants) at different points in time.