Timeline for If a stock doesn't pay dividends, then why is the stock worth anything?
Current License: CC BY-SA 3.0
14 events
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| Aug 17, 2015 at 23:48 | comment | added | Criticizing Israel not allowed | @SourceCode And that value only comes from other people wanting to keep it for the value it has? (In the hypothetical situation where nobody wants to live in houses) | |
| Aug 17, 2015 at 22:51 | comment | added | Source Code | @immibis yeah if its in a good location keep it for the value it has | |
| Aug 17, 2015 at 22:27 | comment | added | Criticizing Israel not allowed | @SourceCode Well, at the end of the trading is a person who wants to actually live in the house. Those people create the initial demand for houses. If nobody wanted to live in houses, would they still be valuable as investments? | |
| Aug 17, 2015 at 18:34 | comment | added | RemcoGerlich | I know, but his question is why. You're not explaining that. | |
| Aug 17, 2015 at 14:38 | comment | added | Source Code | It has value depending how well the company performs. If stocks were worthless without dividends no one would be buying stocks.@RemcoGerlich | |
| Aug 17, 2015 at 14:36 | comment | added | Source Code | I used a house as an investment reference. If you cant live in a house you can still hope for capital gain than getting monthly payments (dividends). The questions states what is the point of owning stocks if there are no dividends and thats capital gains. @RemcoGerlich | |
| Aug 17, 2015 at 14:34 | comment | added | RemcoGerlich | The problem is you are answering the question "why do stocks that don't pay dividends have value" with "the value of stocks without dividend can go up". It's completely begging the question, it's an incomplete answer. | |
| Aug 17, 2015 at 14:29 | comment | added | Source Code | The point is capital gain, you make money once you sell it. Why would you buy a stock for dividends if then it performs bad? You'll end up selling it and losing @immibis | |
| Aug 17, 2015 at 14:26 | comment | added | Source Code | because you make money when you sell it, same thing goes if you have a house.. why does it matter to the house owner if the price of your house goes up or down? @RemcoGerlich | |
| Aug 16, 2015 at 23:20 | comment | added | Criticizing Israel not allowed | Why would someone pay $70 for it? So they can hope to sell it for $100 later? If the stock is inherently completely worthless (it does nothing), then it's mind-boggling that people would attach value to it like that... | |
| Aug 16, 2015 at 22:22 | history | edited | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |
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| Aug 16, 2015 at 21:41 | comment | added | RemcoGerlich | But, why? If the company doesn't pay out dividends, what does it matter to the investor how well it performs? | |
| Aug 16, 2015 at 20:18 | history | edited | Source Code | CC BY-SA 3.0 |
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| Aug 16, 2015 at 20:12 | history | answered | Source Code | CC BY-SA 3.0 |