I did watch a remote conference yesterday by University of California, Irvine discussing the state of the economy, stock market, CORONA virus crisis and possible issues later next year and in 2021. The conference was held by professor Christopher Schwarz, very interesting.
A topic came up regarding why the stock market is so expensive; the argument offered was that the main alternative (US government bonds) offer very low yield (something like 0.59% at the moment for the 10 year note: source here) and by consequence people buy stocks (especially large caps or ETFs) because they make more on the devidends these stocks pay.
Back to TESLA stock; that theory does not apply to TESLA, of course, because our darling stock pays nothing in form of dividends. From TESLA's FAQ:
Tesla has never declared dividends on our common stock. We intend on retaining all future earnings to finance future growth and therefore, do not anticipate paying any cash dividends in the foreseeable future.
Not only they pay nothing, but you will see no money from them in the foreseeable future.
So why are speculators rushing in? If is not dividends, is then something else? Something like... sweet?
Good luck
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