Linked Questions

22
votes
10answers
9k views

Why do investors pay trillions for minority stakes in companies, when their only potential payback is modest uncertain dividends? [duplicate]

I'm struggling to understand the core reason to invest in stocks as a minority shareholder. Majority shareholding makes more sense as you effectively control the company, so you can pay yourself ...
0
votes
1answer
623 views

If a stock assures that they will never pay out any dividends in the whole future of the company, is it worth anything? [duplicate]

I've had this discussion a lot with friends. It is simalar to this question: If a stock doesn't pay dividends, then why is the stock worth anything? ...But it is actually not the same. Most ...
0
votes
5answers
696 views

What would a stock be worth if dividends did not exist? [duplicate]

Let's say dividends don't exist, and will NEVER do, for all companies in the world. What would stocks then be worth? The stock could be valued according to the book value. Maybe more if the company ...
-1
votes
3answers
177 views

Why does stock go up or down with company earning? [duplicate]

I want to invest in the stock market, but can't get one thing clear. It is seen that as a company's earnings increase, its stock value also increases. Why? The company is earning more money, not the ...
0
votes
1answer
133 views

Why should an investor care about a company that never pays a dividend? [duplicate]

If a company never pays a dividend, as a shareholder, why should I care if it's doing great and has positive media coverage and hype? What's in it for me? Is the fact it's reported, and analysed ...
0
votes
1answer
216 views

Reasons to own a non-dividend paying stock? [duplicate]

I’m sitting back doing some self-reflection (procrastination) when I start thinking about stocks. My basic understanding of stocks is that the owner ship of company is split up between owners of any ...
0
votes
0answers
27 views

Rise in share price [duplicate]

Why do shares of companies such as Google and Reliance rise even though the companies do not pay a dividend? How do investors benefit in future?
37
votes
8answers
18k views

Why do people buy stocks that pay no dividend?

Before recently, Apple Inc. did not give dividend to shareholders. This makes me curious why people buy Apple Inc. stocks; while it might be due to the expectation of selling stocks at a higher price,...
15
votes
3answers
6k views

Can I get a dividend “free lunch” by buying a stock just before the ex-dividend date and selling it immediately after? [duplicate]

Many companies pays dividend to stock owners. Example: IBM pays dividend to registered stock owners. Owning the stock on dd:mm:yyyy hh:mm:ss will entitle you to dividend. Question: Is it possible ...
9
votes
10answers
6k views

Does the stock market create any sort of value?

Sorry if the below seems like a conspiracy theory. It probably is, but I probably don't understand something. (This has bugged me to no end as long as I can remember.) Okay, so here is what I ...
6
votes
5answers
4k views

Why do stocks go up? Is it due to companies performing well, or what else? [duplicate]

I searched for this question but I didn't get any convincing answer. What everyone says is that if a company does well (I assume this means the company has good returns on its projects) then people ...
1
vote
3answers
227 views

Why are dividends seen as a good thing for investors? [duplicate]

Why are dividends generally seen as a good thing for investors? For example, you can look at this Barrons article where it states Broadcom (ticker: AVGO) plans to boost its quarterly dividend by 51%, ...
1
vote
3answers
156 views

Which asset classes have a “built-in” long-term growth logic?

My understanding is that stock markets are expected to generate returns above inflation in the long run because companies are paying out dividends and because investors demand compensation for ...