>and many profitable companies don't pay dividends at

As you may know, you can make money in stocks by dividends or by growth of the stock price. Companies either plow back their profits so they can grow more or pay out dividends to their shareholders to reward them for investing in the company. So they have to make a choice whether to please their shareholders or grow more. Some big companies decided they are giving their shareholders value by growing as fast as they possibly can by not paying dividends and thus plow all their money into their own companies for investments...

e.g. Google never paid a cent of dividend

I would rather a share go up by 10 cents than get a 5c dividend

>>1462890
And I'd rather get a 15c dividend than have the company grow by 5c.

Do you realize how arbitrary that thinking is?

>>1462892
An expensive share if it is to pay a 15c dividend per share. A 15c growth in share price of a share that pays 15c dividend would be fuck all anyway

>>1462905

This is the logic that keeps you poor you pleb... It is absolutely IMPOSSIBLE to make general statements like this and proves you have zero understanding of the discussion above

>>1462876
Ohh, I see. Thanks a lot this makes a lot of sense. Are dividends small amounts of money usually? Say I had 10k worth of shares, what would be average?

>>1463001
What I mean is would I get like 100 dollars a year for that investment or is it significant

I think it makes sense for tech companies not to pay dividends at the moment. The market is still new, and if you put all your money into growth you can form monopolies (see facebook and google) which no government other than China can challenge.

not every company is an over-hyped tech company.

>>1463001
>>1463012
The average dividend yield (annual payout) for stocks in the S&P 500 is about 2%.

>>1463023
>I think it makes sense for tech companies not to pay dividends
This has historically always been true for tech stocks, going back to the '70s and '80s. NASDAQ stocks (highly concentrated towards tech) have always paid out less than blue chips. And in most cases, their investors were more than compensated by the growth in the stock price.

>>1463029
>not every company is an over-hyped tech company
No, but most mid- and small-cap companies are still in the growth phase of their business cycle and can earn much greater profits if they hold and utilize that cash.

A company that pays out all its profits in dividends is basically dead in the water. Its the equivalent of management saying, "We're out of ideas for how to make this company better, so fuck it we're not trying anymore." Sometimes that's the right answer (e.g., utility stocks) but its often a sign of complacency and stagnation.

>>1463012
check dividend aristocrats list

File: XCOMMOONMISSION.png (785KB, 990x596px) Image search: [Google]

785KB, 990x596px

I made a meme out of outrage

>>1463048
OOPS wrong thread, lol