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Issue dividends and return profits to their shareholders. They don't need to increase revenue by n% every year. Lots of electrical distribution companies are pu
by polski-g 2y ago
Issue dividends and return profits to their shareholders. They don't need to increase revenue by n% every year. Lots of electrical distribution companies are publicly traded and do just this.
- datavirtue 2y agoShare price appreciation is like crack. I think a large part of the investment market is looking for the share price to increase or they aren't interested. There are inexpensive stocks yielding close to 10% from dividends, but you are told not to expect an increase in share price. Instead, people go after stocks that yield far less (0-3% dividend with a much higher stock price) but which may experience a growth in share price.
- sirwhinesalot 2y agoThat's because in many places capital gains are not taxed while dividends are, hence a preference for stock price increases. This distortion should be corrected somehow otherwise the economic incentives will continue to be to milk the cow dry at the expense of everything and everyone.