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ONLY TO BE ANSWER BY BUSINESS PEOPLE WHO HAVE FAMILIES ANS CHILDREN Additional Details READ THE QUESTION CAREFULLY(TO BE ANSWERED ONLY BY PEOPLE WHO RUN COMPANIIES AND ALSO RAISE CHILDREN...
Trying
What would happen if a corporation did not pay out any dividends?
Everyone would dump their stock, hence stock values would fall, causing a downward spiral in the net worth of the company. If this happened, the company would have increasing difficulty raising capital or borrowing money. This spells big trouble all the way down the line. Banks and other creditors and suppliers would want more security, hiring new people will become more difficult, etc.
mariablues
Nothing. They don't have to pay out dividends.
Shredded Cottage Cheese
many corporations do not pay dividends. People buy it based on capital appreciation of the price of the stock.
sealove
Umm, nothing.
Barry auh2o
Investors who want income from their investments would not find this stock to be a suitable investment.
Dempo
If a corporation doesn't pay out dividends it means that they have better use of that money. Which means that they can use that money to get you same or better return than what you are getting now.
In simple words, the company is a growth company and needs those funds for investment.
Mark B
Not uncommon at all. Microsoft didn't start paying dividends until about 4 years ago.
Generally, if it's a growth company it won't pay dividends.
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