Question

Does Amazon have dividend paying stock or non-dividend paying stock? Why do you think it is...

Does Amazon have dividend paying stock or non-dividend paying stock? Why do you think it is paying or not paying? Why would you purchase a non-dividend paying stock? Why?

Homework Answers

Answer #1

Amazon is non-dividend paying stock

It is not paying because it is investing in new technologies and in its existing business as well as in ne markets to further grow their market share and cash flows.

One would buy non-dividend paying stock if that company is investing in new assets and new markets because this will grow its free cash flows which will take share price higher, providing capital gains to investor with potential to pay dividends later.

the above is answer..

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