Am I retarded or is my uncle?

>>1776090
that south African makes me so fucking hard. can't wait till I get my model 3 in a few more months.

>giving financial advice to family

>>1776090
dividends are profit that the company makes that it feels couldn't be better spent enhancing the value of the company in other ways. Companies who's stocks don't have dividends reinvest their profit into the company, but some companies can't or don't want to grow more and thus direct those profits to shareholders, which in its own way increases the value of the stock.

>>1776135
This.

A company, more or less, has two decisions with extra cash flows:
1). Invest it in a project with a positive npv that will result in an increase in firm value
2). Give the money back to the shareholders, increasing share value by compensating the shareholders better

>>1776090
Yeah, you're basically correct. Except of course capital gain isnt guaranteed, the stock could lise value. What doesn't the uncle understand? Have you tried putting it in terms of interest on cash held in the bank?

>You put $1000 in the bank at 5%
>at the end of the year you have $1050
>you take and spend the $50
>your original money is still there untouched

>>1776135
The only reason a stock has value is because of it's dividend. Companies that do not pay dividends might pay a dividend in the future, so that is where the value of it comes from.

The only way to profit from a non-dividend stock is to sell it, not to hold it.

File: MAD AF.webm (398KB, 980x720px) Image search: [Google]

398KB, 980x720px

>>1776389
>The only way to profit from a non-dividend stock is to sell it, not to hold it.
BRB, selling all my stocks RIGHT FUCKING NOW

FUCK, WHY DIDN'T ANY OF YOU CUNTS TELL ME NON-DIVIDEND STOCKS WON'T MAKE ME ANY MONEY?!?!

>>1776486
make sure the number is smaller than it was when you first got it... so you profit more.

>>1776090
Please don't be too hard on your uncle. Us shareholders rely on financially illiterate people like him spending all their money in the first place to create those dividends. Just leave him be. You are correct.