>I buy stocks and I now own 1% of a company>the company makes 100 dollars in profitWhy do I not get a cheque for 1 dollar?
>what are dividends You do get paid a portion of their profits when you own stock. But you only own like 0.0000001% of the company so you only get a few bucks. If you actually owned 1% of a company you would get a very large dividend payment.
>>62326505Thanks for playing.
>>62326534not every company pays dividends.
>>62326541I didn't say all stocks did. But OP is acting like stocks don't pay a portion of the company profit. They do.
>>62326541this is why most stocks are a scam at end of the day, i still buy them trying to profit but ya
>>62326546im obviously referring to the stocks that don't pay profits to their shareholders.
>>62326546>not all stocks do>but stocks do
At 51% you can take control of the company. So youre basically paying a fee for trying to acquire voting rights / control when you buy a stock that doesn’t pay a dividend.
>>62326505Your representatives at the company decided to do something else with that money. It could be anything from stock buybacks, to dishing out bonuses to the workers (especially the CEO and higher-ups), to DEI hiring, to actually reinvesting in the company to make it even more profitable.>I didn't vote for itBecause you have the pleb tier stocks. The big boy stocks get voting rights and what not.
>>62326505Because most companies don't use 100% of profits to pay out dividends. A lot of the profits goes back into the company to expand operations so that your profits can increase into the future.If 100% of profits went to dividends the company would never grow.
>>62326559>>62326563>Knows stock doesn't pay dividends>Buys it anyways>Complains it doesn't pay dividendsSo you are just a fucking retard.
>>62326563>what is reinvestingTard
>>62326505Everyone in this thread is retarded.Look- you have stock holders equity, just because you have equity in the company doesn't mean you have control over the profits- If the company makes 100 dollars and it stays within the company the value of your shares will go up by 1 dollar if it sits inside of their cash account, if they use the money to expand their business and it works out the net equity also increases, then lets say their 100 dollars investment in new equipment and supplies pays off and they make 200 bucks, that's even more equity you own.Lets assume you own 100% of a company, and its worth 10 dollars, if the company makes another 10 dollars and it keeps it- the value of the company becomes 20 dollars, the value of your shares will shift to reflect that
>>62326536this. stocks are literally musical chairs / greater fool theory without dividends.
>>62326505Because it's in the disclosures/disclaimer that they aren't necessarily inclined to and can pay out a dividend at their discretion...>>62330397
>>62326505Invest in companies that hand out dividends?
>>62330506>>62330501>>62326541>>62328286how do I ensure that the dividends I receive are a precise fraction of profits same as my factions of shares that I own.
>>62326505so the company can reinvest your dollar towards making 200 dollars a month, increasing the value of your stock so now you can sell it for more or borrow more from it.
>>62326505As crazy as THAT sounds...imagine buying stock in a company that doest even profit.
>>62330561Learn to read an earnings report.
>>62326541because if you have a good business model its better to invest the money you earned than to pay it out.paying dvidends means:>we dont know how to use the money for growth
>>62331511i.e. a stock buyback which is basically the same thing
>>62330561because the board decides how much from the profits to pay towards dividends and how much to reinvest in the company (new equipment, research, new hires etc).
>>62326534What an idiotic response. Don't talk about stuff you have no idea aboutActual answer: You got 1% appreciation in equity already
>>62326505If you get the dollar - that is a dividend, and it is taxable as regular income. If, instead, the company invests that dollar back into the business, your stock is worth 1% more than you paid for it, and you can sell it, making the gain taxed at the capital gains rate, which is much lower. The death of dividend stocks is a result of US tax policy.
>>62326559Just don't buy the ones that don't refrain from paying the dividend.
>>62331511Yep, that is why Tesla do not pay the dividends.
>>62336131I thought they don’t pay the dividends because they aren’t profitable Saar
>>62326505>P/E 100x
