Why would an investor buy stocks that don't pay dividends?
If the only way you can make money is gambling the stock price will rise. Isn't that gambling? Would you lend someone money to gamble?
by 
11stevo73
ANSWERS: 3
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If you bought Google back in the day, you could retire and I don't think they pay any dividends. Depends how you define gambling I guess.
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The dividend-paying stocks are ALSO a gamble. Yes, investing in stocks (whether or not the stock provides dividends) is always a gamble. Explanation: Think about it. (A) You invest in stock A that does NOT pay dividends. If it's value rises then so does the value of your investment. If it's value falls then so does the value of your investment. (Compare to B) You invest in stock B that DOES pay dividends. If the value of the stock falls more than the dividends it pays, then so does the value of your investment. If the value of the stock is higher than [original value - dividend], then the value of your investment is higher. *** EACH IS EQUALLY PRONE TO INCREASE OR DECREASE your investment value (if, for example, both stocks were investments in the same company - which in fact is not unusual).
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Investors who purchase stocks that pay no dividends prefer to have these companies reinvest their profits in other projects. They are hopeful that these internal investments will generate higher returns through higher share prices. You can try to take an extensive overview of the company’s general dividend policy including yield, buybacks, payout history, and dividend schedule at the investment tool. In addition, I recommend learning about Mutual funds and ETFs that offer dividends.
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