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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As far as I understand, the value of a share comes as you said from the dividend but also from (hopefully) increased value. Let’s say, you bought a share of 100$ but after a year, the same share would cost 200$. This value becomes real when you sell. Reference: Wolf of Wallstreet.
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