[lbo-talk] stock valuation without dividends

Doug Henwood dhenwood at panix.com
Tue Aug 9 16:45:59 PDT 2005


Jim Devine wrote:


>Why does gold have a positive value, even though it doesn't pay
>dividends? A zero-dividend stock has positive value simply because
>people think it will be more valuable in the future, i.e., pay with
>capital gains.

Gold does have the advantage of having been viewed as "real" money (however superstitiously) across time and space. Try that with Pets.com stock!

Doug



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