Sign up to save your podcasts
Or
Share The DC Today - Monday, March 18, 2024
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
The DC Today - Monday, March 18, 2024
Today's Post - https://bahnsen.co/3x6BWVi
Ask David
“Are tech stocks likely not going to be good dividend growth stocks for the foreseeable future? Given their reliance on good and expensive R&D to keep market share? Seems to be a no-brainer to me. Dividends and more meaningful dividend growth is seemingly better in other sectors. Or am I just underestimating the time it takes for dividends to grow?
What will happen to tech stocks if they have poor dividends and stock price growth flattens out? Where would the value for shareholders come from? Or am I missing something or am I just worrying unnecessarily?”
~ Nathan
Some tech companies will not pay a dividend, some will, some will grow it, and some will not. Technology is way too broad of a sector to answer in the context of monolithic treatment of dividends. What is constant where there are technology companies that pay consistent and growing dividends is that the company is mature, has recurring cash flows, and management that has exited the ego phase of corporate oversight.
Value does not come from dividends – it comes from profits. The value of those profits is realized in dividends. If profits are not returned to shareholders but used to create more profits, that is where value creation could come from. Or, that is where value could be destroyed.
Links mentioned in this episode:
TheDCToday.com
DividendCafe.com
TheBahnsenGroup.com
View all episodes
By The Bahnsen Group
4.9
536536 ratings
Today's Post - https://bahnsen.co/3x6BWVi
Ask David
“Are tech stocks likely not going to be good dividend growth stocks for the foreseeable future? Given their reliance on good and expensive R&D to keep market share? Seems to be a no-brainer to me. Dividends and more meaningful dividend growth is seemingly better in other sectors. Or am I just underestimating the time it takes for dividends to grow?
What will happen to tech stocks if they have poor dividends and stock price growth flattens out? Where would the value for shareholders come from? Or am I missing something or am I just worrying unnecessarily?”
~ Nathan
Some tech companies will not pay a dividend, some will, some will grow it, and some will not. Technology is way too broad of a sector to answer in the context of monolithic treatment of dividends. What is constant where there are technology companies that pay consistent and growing dividends is that the company is mature, has recurring cash flows, and management that has exited the ego phase of corporate oversight.
Value does not come from dividends – it comes from profits. The value of those profits is realized in dividends. If profits are not returned to shareholders but used to create more profits, that is where value creation could come from. Or, that is where value could be destroyed.
Links mentioned in this episode:
TheDCToday.com
DividendCafe.com
TheBahnsenGroup.com
More shows like The Dividend Cafe
View all
Renewing Your Mind
5,033 Listeners
Breakpoint
2,960 Listeners
The Briefing with Albert Mohler
8,494 Listeners
Thinking in Public with Albert Mohler
984 Listeners
The World and Everything In It
6,933 Listeners
Mortification of Spin
825 Listeners
5 Minutes in Church History with Stephen Nichols
1,667 Listeners
National Review's Radio Free California Podcast
666 Listeners
The Remnant with Jonah Goldberg
6,374 Listeners
Compelled - Christian Stories & Testimonies
960 Listeners
Advisory Opinions
3,731 Listeners
The Dispatch Podcast
3,169 Listeners
Life and Books and Everything
631 Listeners
Capital Record
424 Listeners
Things Unseen with Sinclair B. Ferguson
1,448 Listeners