Why buy Apple stock if they pay out 0 dividends?

by Paul Schreiber

What makes Apple stock so appealing other than the fact that their stock prices are increasing? Many individuals make millions per year off of dividends that are paid out, including Steve Jobs himself (makes money from Disney’s dividends).

ALSO: Why doesn’t Apple pay dividends to stockholders?

Answer by muncie birder
Apple believes that it can make more money for investors by reinvesting the profits in product enhancement than it can by paying out that money in dividends. The same can not be said for Microsoft.

Answer by RetiredDebtFree
Dividends are not what everyone desires. For one, they add to chargeable income. Apple chooses to hang onto their cash, use it for enhancement and increase the share value of the company. As long as I don’t sell my shares there is no chargeable income from the shares. Apple could do a Special Dividend if it wanted to pay out some of that cash it hoards, but I really don’t care if it does or not. A payout will have tax consequences for me, and the share price will adjust down for any special payout.

Answer by Mr. Prefect
Dividends are not a reason to buy stocks unless you are retired and need some income to live off of. Tech companies plow back their capital into their company for research and enhancement, as this industry is ever changing. What is in now may be out tomorrow. Also, as is mentioned before me, dividends are taxed more than capital gains, which is the prime reason to buy a stock.
If you buy Apple at for example $ 240 per share, and if they had a 1-2% dividend, and you kept the stock for a year, and sold it for $ 300 per share, would you be bragging about the few pennies you received from Apple’s dividend, or the huge capital appreciation?

Answer by b2fnow
The dividend is just icing on the cake, not the reason you invest in stocks.

To answer, turn the question around a small bit.

Why buy a stock for a paltry 1% dividend and take the risk of losing half your money in a gyrating stock promote.

What do you reckon? Answer below!

Apple Buys vs. Stock Price


Image by ajstarks
Part of a series made with Processing (http://processing.org) to illustrate stock price with fascinating events.

This illustration compares Apple stock price with my buys —

cf www.valuepro.net

Answer by te144
In addition to above, competition is always an outside influence on any company’s promote value.

Answer by The Shadow
Intrinsic value is a calculation of a company’s value based on estimates of future financial routine, including growth in sales and cash flow. The current stock price is not part of the calculation, so it does not influence the intrinsic value.

What do you reckon? Answer below!
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