4 ms·
There are plenty of companies whose stock is sought after but that never paid dividends (I think Tesla and Amazon are some example, or used to be at least)
by mrighele 2y ago
There are plenty of companies whose stock is sought after but that never paid dividends (I think Tesla and Amazon are some example, or used to be at least)
- onlyrealcuzzo 2y agoThey return cash to shareholders in the form of buybacks.
- deleted 2y ago[deleted]
- Retric 2y agoNever have isn’t never will, dividends and buybacks are a sign the company doesn’t have use for the money. Meta and Google both eventually started paying dividends because they’re essentially tapped out of internal investment ideas. Telsa and Amazon on the other hand believe they have something meaningful to do with the money. But eventually successful companies just don’t have anything useful to do with their giant piles of cash.
- tfehring 2y agoIt’s not really about dividends. If you buy a share of Amazon stock, you’re getting a cut of the value that a million+ people are producing every day by writing code or moving stuff around. The value most workers create for their employers’ shareholders is much bigger than their rent check, and capturing that value is even easier than being a landlord. Dividends are just moving money from one pocket to the other, the value created by people’s work is where the returns come from. Financial returns without value creation are an anomaly, though not necessarily a rare or short-lived one.
- lottin 2y agoDividends don't matter. What matters is profits (regardless of whether they're distributed to shareholders or not).