Some companies give dividends, some don’t. It’s a difference in strategy, and I think more of a young company vs old company thing. I don’t find it particularly meaningful. If you are growing quickly, it makes more sense to use your financing to finance more growth. If you’re not, makes more sense to attract investors with a healthy dividend.
jarfil@beehaw.org 2 days ago
A company that can’t offer a ROI to its stockholders, is a startup that should never be allowed to go public; stick to angel and venture investors instead. Public stocks relying on the hype of “growing quickly”, are a Ponzi scheme through and through.
If we speak of company ages, the argument doesn’t hold either:
A good chunk of the US market is made up of Ponzi scheme companies. With 401k-s tied to market investments, people are setting themselves up for a very rough awakening.