2. Given the importance of dividends to the well-being of equity investors, why do they put up with the fact t

Question

2. Given the importance of dividends to the well-being of equity investors, why do they put up with the fact that dividends are discretionary?

Answer 1

Growth is the best reason for buying stocks. Value is the second best reason. Dividends are the third best reason.

Answer 2

If the company has a better use for the money they shouldn't return it to shareholders.
When you buy a stock for long term investment in a company you expect to grow you don't want dividends because it means the company isn't using the money to grow.
I was very unhappy when MSFT decided to give dividends