Dividends provide the essential basis for stock value, even for stocks that might not be paying dividends at present…

Dividends provide the essential basis for stock value, even for stocks that might not be paying dividends at present…

— Josh Peters, CFA from ” The Ultimate Dividend Playbook: Income, Insight, and Independence for Today’s Investor.” P. 25

…Without dividends, or at least the prospect of dividends, stocks are little more than handsome pieces of paper. With dividends, shares of stock take on true investment merit.

All investment value relies on future return of cash, and it ends with the observation that for stocks, future returns are a function of dividend yield and future dividend growth.”

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