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0 pointsstogot9d ago0 comments

I hypothesize all dividends, no share value. How would that world look

0 comments

that makes no sense. companies need capital, that's why there is a stock market. dividends are paid from past earnings, never capital (earnings are only a %age of the value of the capital) and not from higher expectations of the future.

cluckindan9d ago

In a perfect world… reality is different, however.

Plenty of companies take on debt to pay dividends, e.g. just before going public.

fsckboy7d ago

growing companies generally have capital needs that exceed retained earnings, so paying dividends would by definition increase capital need.

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