배당 없는 주식의 의미가 뭔가요? 🤔

If you imagine a decent dividend stock pays out 4/5 percent dividends a year. Maybe less if it's a reliable stock. That money is no longer being used to expand. If you are a growing company, expansion is expensive. Would you rather expand with that five percent or give it away?

Usually dividend companies are mature companies with no more room for expansion or less room for expansion.

Amazon is up about 233,000% since going public in 1997 without paying a dividend. The company grew massively over time and with that success the stock went up.

"Isnt a stock without divindends just like crypto? "

No. Why would something like the business Amazon has grown into over the last 20-30 years and the associated stock be comparable to something like fartcoin?

"but what are you actually buying low and selling a high? "

A company that continues to grow and become increasingly profitable over time.

Eventually when the growth starts to slow/the company matures then you start seeing many companies pay a dividend.

You should change your mental framework about what a stock is. A stock is ownership in productive capital. Companies are legal entities that are “productive”, i.e. they provide value, if they are healthy. Providing value will lead to earnings. Whether these earnings are (partially) paid out to the owners as dividends or not, isn’t important, the value of the company increases as long as it’s productive. Earnings that are not paid out may be reinvested into growth, for example. Growing companies that provide value increase their earnings. Now, there are some more detailed considerations around expectations, e.g. companies even if they have no net earnings can increase in value if their operations are expected to lead to future earnings. But this is advanced thinking, not really necessary to understand: if you own a stake in a company, it will lead to value for you, as long as the company is being productive and healthy.

Growth. The management of the company has greater opportunities with their earnings, then returning a portion of them to the shareholders. Dividends are for mature companies that have fewer opportunities.

It all sounds about right with reinvested profits until you see stocks with 5000 PE with the promise that they will colonise Mars

Don’t think too much about it 🤣

Stock prices are based on future cash flows.

Stocks that pay no dividends are typically growth stocks that want to keep investing profits into the company now so they theoretically can pay shareholders MORE dividends later. Good dividend stocks are typically mature companies who have very stable cash flows. They don’t grow much but they pay a nice dividend.

Typically growth stocks return more, but are more volatile/speculative. Dividend stocks are stable/defensive - make more sense when you have a lot of capital.

It is management’s job to find the best use of capital for the free cash flow of the business. It can be reinvested to grow the current company’s business, it can be used to go into new ventures or buy other companies, or it can be returned to the shareholders through dividends or buybacks.

Management should look at all these options and find the one that gives the shareholders the best return on invested capital in the long term.

It is more similar to owning a house than to owning crypto. The house does not return dividends, but it stores value perceived by others (e.g., considering land price, building, etc.). If nobody thinks your house is valuable, then it will be valued at 0 in the marketplace.

At the very basic a stock is part ownership of the company. If you own 10% of a company thats worth $100, the value of your stock is $10. If that company grows and is now worth $1000 the value of your stock is worth $100. This is without dividends. Again this is very basic. Most dividend laying stocks are companies that are no longer growing or are very slowly. Since they arent spending that money to grow their actual value might only go from $100 to $150. Since they have extra cash because they arent spending it to grow they pay the dividend. With non dividend paying stocks youre hoping the value of the company goes from $100 to $1000 instead of only $150.

You’re not buying a dividend. You’re buying ownership.

Even if a company pays 0 dividends, you still own a piece of the business. That means you own a claim on its profits, assets, cash flow, brand, everything. If the company makes more money next year than this year, your piece of that business becomes more valuable. The market just reflects that over time.

Dividends are just one way to get paid. The other way is growth. If a company reinvests its profits back into itself and grows earnings faster, the share price usually follows. That’s why companies like Amazon didn’t pay dividends for years. They kept the cash, expanded, increased profits, and shareholders got rewarded through price appreciation instead of income.

It’s not like crypto where there’s no underlying cash flow or assets behind it. A stock represents a legal claim on a real operating business that produces revenue and profit. Even if it doesn’t pay you today, it might pay you later. Or it might use that money to grow so much that your shares are worth way more in 10 years.

Also think about this. If a company pays you a dividend, the stock price literally drops by roughly that amount when it’s paid. So it’s not free money. It’s just capital being moved from the company to you.

So what are you buying low and selling high. You’re buying future cash flows at a discount. That’s it. Future earnings, future dominance, future market share. If those improve, price goes up.

Most beginners think dividend equals real and no dividend equals fake. It’s not that simple. Total return is what matters. Price growth plus dividends combined.

If you’re new, focus less on whether it pays a dividend and more on whether the business is actually growing profits over time. That’s the engine.

If you’re trying to understand this stuff properly and not just gamble, I break down investing basics in simple terms in my newsletter. Check my profile if you want to go deeper.

In Australia, we are so risk averse that people prefer that companies pay dividends lol. I get you though, I much prefer dividends myself

Guys i have read a couple of these answers and i get them but a stock doesnt always go up when the revenue goes up even i know that. The companies profits and share price is not a 1 : 1. Thats what i think atleast please correct me if otherwise

I think this is a reasonable philosophical question, and the thought has occurred me too.

The following argument could be made:

A non dividend stock still holds value since it might provide dividends at some point in the future when it has grown and matured. Also, the company might be bought by a competitor that provides dividends.

Imagine a company that somehow has set an iron rule to neither ever provide dividends, nor ever give over control by becoming acquired. Then, does the company actually have any value to a stockholder?

Sure, you own a great profitable company. But you can never personally get anything out from it. And no one is interested in buying it from you either because of these iron rules.

Simplifying a lot (I'm also new) if the company paid dividends, it would be losing that value, and you would be taxed for those benefits.

If it doesn't, it keeps that value, therefore it grows and eventually if the company is bought it would be at a higher price.

How that's calculated is beyond my compression

Its basically a pyramid scheme

Without the underlying stock providing any income all you have is a parking spot for money which looks cooler than other peoples parking spots