Linked Questions

23
votes
10answers
10k 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
915 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
761 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
192 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
467 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
1answer
134 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
137 views

Why do people buy the stocks of companies that do not pay a dividend and do not have steady growth? [duplicate]

For example, consider an airline company like AIR FRANC KLM. It doesn't manifest steady growth to support the hope that share price would be higher in the future. At the same time it doesn't pay a ...
0
votes
1answer
98 views

Is it a good idea to focus on dividend income when investing in stocks? [duplicate]

I am 30 years old (can hold to stocks for longer) and currently invested in 11 different stocks positions in the US and EU - all of these companies are in the S&P500 and in the DAX and are in 7 ...
0
votes
2answers
84 views

What makes expensive shares worth it when the dividends are so low? [duplicate]

I'm new to the stock market and was wondering why stocks are so expensive when the dividends are so low. One share of apple costs 127 and its dividend is .22$. What exactly makes it worth so much? I ...
-1
votes
2answers
82 views

If the only value in a share (excl. dividends) comes from owning part of a company (and few own enough) then why are stocks valuable? [duplicate]

Sorry if the title is a little vague, let me be more precise. This post says that the value in shares comes from: The dividend payout Voting rights Owning part of a company, therefore receiving ...
0
votes
0answers
43 views

What's the intrinsic value of stocks [duplicate]

I am a financial noob. I wonder what are some intrinsic value of stocks. While purchasing a stock, I expect that the price of it will go up, and I'll sell it to gain the price difference. However, the ...
45
votes
11answers
24k 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,...
14
votes
11answers
10k 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 ...
16
votes
3answers
8k 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 ...
6
votes
5answers
5k 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 ...

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