Originally Posted by
SBQ
You've missed my point, but that's ok (beginners aren't expected to know). When I look at buying shares in a company, I view it as being a partner of the business. Therefore, the partner's 1st intention should not be to extract dividends from the business, and certainly when the business seeks capital for growth, why elevate un-necessary capital costs that are detrimental to the shareholders (or as I say, to the partnership?). In another way if I was a partner in a business, I would prefer the business to keep the after tax cash and use it for growing the business. Not to expect that cash to be put in my pocket year after year. Then after many years, when the business has fully matured with no growth for expansion, THEN the dividend card be played.