I understand that a share of stock represents a share of ownership in a company. But if dividends are not paid, what is the actual value of that stock? Why does it have value? The company making more money does not flow to me because I own the stock. So is it basically just like owning a baseball card in that if the player (company) does well more people want to collect (own) their cards (stock) and this the price goes up?
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The real answer people aren’t giving you. If a stock never pays dividends, it has no value.
It only has value if people think AT SOME POINT it will pay dividends and so the shares can be sold under that assumption.
Holding a common share entitles you to just about nothing in terms of asset rights. Companies have a list of priority for creditors, common shareholders are usually the bottom of that list. So unless you have a large enough ownership share, a stock which isn’t paying dividends and isn’t EXPECTED to pay dividends will be worthless.
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