• ammonium@lemmy.world
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    3 days ago

    There are plenty of companies that never pay dividends, yet people buy them.

    II struggled with this as well for a while. You can look at it this way, they are worth money because they could pay dividends, but they don’t actually have to. Your bar of gold is worth a certain amount of money equal to the money you could sell it for, and your money is worth something because you could buy something with it.