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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Companies that pay big dividends don’t see much growth in the stock price.
Companies that don’t pay dividends are putting that money back towards making the company better (hopefully).
The stock price usually rises faster with companies that pay out little to no dividend
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