![](/static/66c60d9f/assets/icons/icon-96x96.png)
![](https://lemmy.world/pictrs/image/0943eca5-c4c2-4d65-acc2-7e220598f99e.png)
1·
1 year agoI know about dividends but decided to keep the comment simple. Aren’t dividends relevant only in utility and holding companies?
I know about dividends but decided to keep the comment simple. Aren’t dividends relevant only in utility and holding companies?
Correct me if I’m wrong but this is baked into capitalism. Stocks are attractive to investors because they want to sell them for a higher price later on, and stock prices increase when the company grows.
My understanding is a little shaky too. I suppose companies are incentivized to target infinite growth so they can get the most money out of the stocks they hold, but this is a culture and greed thing, not a hard requirement.