Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Alberta's Child
High growth companies often don't pay dividends because they are capital hungry (and reinvested capital means less leverage, less dilution, or both to current shareholders)...and mature companies pay dividends because, being less capital hungry, they can distribute excess cash generated to investors.

Dividends are not a good indicator of the quality of an investment.

19 posted on 05/01/2022 8:31:47 AM PDT by RoosterRedux
[ Post Reply | Private Reply | To 10 | View Replies ]


To: RoosterRedux
High growth companies often don't pay dividends because they are capital hungry (and reinvested capital means less leverage, less dilution, or both to current shareholders) ...

Understood. But what exactly is Facebook (for example) doing with its capital -- writing more software code?

23 posted on 05/01/2022 11:09:19 AM PDT by Alberta's Child ("Mr. Potato Head ... Mr. Potato Head! Back doors are not secrets.")
[ Post Reply | Private Reply | To 19 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson