Understanding The Point Of Buying Stocks With No Dividends
There are some very good reasons why investors buy stocks without dividends. And I’m here to present those reasons and discuss them with you today.
Because what is the point of buying stocks without dividends? When you don’t understand the reasons for doing so.
With that said, let’s get moving. Then you can start investing…
Why Buy Stocks Without Dividends? (7 Reasons)
You came here to learn why investing in stocks with no dividends is a good idea. And my answer to this question revolves around 7 reasons.
Specifically, because you…
- Do not need the money from dividends
- Prefer growth vs dividend investing
- Have the desire to maximize tax efficiency
- Want the most cash invested for compounding returns
- Like diversification beyond traditional dividend-paying sectors
- Think companies can reinvest profits for better returns
- Believe share buybacks are a better use of company funds
Next, let’s explore each of these reasons in greater detail. Then you will know exactly what I’m talking about.
Better yet, before we are done. I will give you some examples of the best stocks with no dividends.
Let’s do this…