Stocks That Do Not Pay a Dividend Must Have a Value

question 17

True/False

Stocks that do not pay a dividend must have a value of $0.

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Definitions:

Dividends Are Expected

A statement indicating that shareholders anticipate receiving a share of the profits from a company, usually distributed in the form of cash payments.

Investors Require

The expected return or conditions that investors seek before committing capital to an investment or project.

Current Price

Current Price is the market price at which an asset or service can be bought or sold at a particular time.

Expected Dividend

The anticipated amount that will be paid out in dividends to shareholders of a company, based on past and projected profitability.