i have a question about stocks my question is the ones that dont offer dividends what are they good for?

Answer 1

Companies who do not offer dividends put their cash back into their business instead of paying it out to their stockholders. These companies are commonly refered to as growth stocks and tend to appreciate at a faster rate than the dividend paying companies that are more mature in nature. Utility companies are a good example of a dividend paying company while google is a growth company.

Answer 2

When a company doesn't offer dividends it means either they are to small and debt laden, or they reinvest almost everything they earn to grow and expand. When you purchase these kinds of stocks you are wanting their stock price to go up in value. This is the only way you can make a profit off of these types of companies. Buy low sell high. With dividend companies you do not need to buy low and sell high all the time. Over the long haul the dividends payed are buying you free stocks which lower your overall price.

Answer 3

Why does the cost must be decrease than $3? Dividends on any inventory are many times going to be interior the a million-5% variety. in case you have a $a million inventory and a $10 inventory that the two pay a three% dividend no remember in case you purchase 1080 shares of the 1st or 108 shares of the 2nd your return would be an identical.

Answer 4

Not all stocks pay dividend because some management see a better use for the funds than to give it back to shareholders.
While new and young companies are growing, they tend to reinvest their retained earnings back in the company in order to generate more earnings for the shareholders.These companies tend to have less or no debt as part of their financing structure.
Mature companies that have a stable earning trend tend to pay dividend to their shareholders as part of the corporate strategy and tend to use more debt in their financing.
In both cases, it is the shareholders money that management is using or giving back.
Hope this helps
Boudames

Answer 5

Growth. Well, for example, Microsoft didn't pay any dividends until 2003, but I'd sure like to have had some of their stock from the start until then!

Answer 6

generally faster growth than a more mature company that offers a dividend. you don't get any money back from the company each year, its invested in the company to grow the share price. so, riskier but with higher potential returns

Answer 7

These companies are generally new and allow for growth in price. Sometimes if they grow fast, then you end up with more stock through a stock-split, which also encourages growth.

Answer 8

appreciation.