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 company might not pay dividends now, but that does not mean it will never pay dividends in the future. That is up to the future majority shareholders to decide. There are also other ways for a company to pay out cash, for example the shareholders can vote on a stock buyback program where the company will buy shares from the shareholders. This allows the shareholders to decide for themselves if they want cash or continue to own the company. And if the company is dissolved for some reason other then running out of equity the shareholders all get their share of the remaining value.
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