dealfinder500

Why I Prefer Dividend Paying Stocks

I am relatively new to investing (about 6 months) and I was wondering the same thing. I really don't understand why someone would want to own a non-dividend paying stock. The whole idea of owning stock is to share in the profits - you're one of the owners! If the business isn't going to provide any return to me, why would I want to own it? If I had shares of a non-dividend paying company why would someone want to buy that from me? Their only hope of making money is if they can find someone willing to buy their shares for more then they originally paid for them.

If I invested money in a local company I am going to expect to get something in return. Now it may take a while for that company to generate a profit, but once that company becomes successful, I'm going to expect to get some payout from my investment.

I would not want to own part of a company knowing that they are never going to give me any cut of the profits. Why would anyone want to own a company that doesn't give them anything in return? Why would anyone want to buy that from me?

But obviously, since it appears most stocks pay very little or nothing in dividends, most people don't share the same view as I do.