33 votes
Accepted

Why aren't non-dividend stocks ponzi assets?

I started to close this as a duplicate of If a stock doesn't pay dividends, then why is the stock worth anything?, but then realized that it is a slightly different question: suppose a stock price ...
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  • 115k
13 votes

Why aren't non-dividend stocks ponzi assets?

Ultimately, if you own the company, you can vote to shut down the company, sell everything it owns and give the money to the shareholders. You can also vote for the company to start paying dividends. ...
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7 votes

Why aren't non-dividend stocks ponzi assets?

So my question is... suppose a stock price were to continuously drop despite high company performance (profits)... Is there something the shareholders can do to get some share of the profits? This ...
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6 votes

Why aren't non-dividend stocks ponzi assets?

This is a really common idea that I've seen lately. It's usually part of a rationalization about how owning stock in a company is no different than owning something that is only worth what someone ...
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5 votes

Why aren't non-dividend stocks ponzi assets?

Dividends and speculation aren't the only upsides to owning a stock. The company could decide to execute a stock buyback. This will increase demand for the stock you own and drive up the price. The ...
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4 votes

Does all stock have dividends? and what is the most intelligible definition and concept of dividend?

Not all stocks pay dividends. Remember that stocks represent ownership of a company. If a company issues 1,000 shares of stock and you own 100 of them, you own 10% of the company. A dividend is when a ...
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3 votes
Accepted

Can a company announce to give dividends (quarterly) and after two quarters decides not to give dividends?

Companies can reduce or suspend dividends at any time prior to the next date of record.This is done in order to preserve cash when capital in difficult market times. In 2020, many well known companies ...
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3 votes

Why aren't non-dividend stocks ponzi assets?

There's no intrinsic connection between the stock price and actual company profits without dividends. That is not true. If the stockholders are voting in Directors who don't give dividends, it can ...
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2 votes

Why aren't non-dividend stocks ponzi assets?

No dividend There are several points here. Let's take each one. First, an enterprise with zero dividends is priced as zero in a dividend discount model (DDM). Let me repeat the last part: in a ...
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1 vote

Does all stock have dividends? and what is the most intelligible definition and concept of dividend?

After some period of operating the business, the managers of the company look at their books, and make a positive decision to take some cash they have access to (*), and distribute it to the owners of ...
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