Amazon Has No Dividend. Here's Why Long-Term Investors Should Own It Anyway.
With a stock price that has rocketed up 66,570% over the past 25 years, investors shouldn't question Amazon's capital allocation policy.
Overview
Over the past 25 years, shares of Amazon (NASDAQ: AMZN) have skyrocketed 66,570% (as of Sept. 23). This might be the single greatest performer for investors this century. It's impossible to complain about a gain that turned $10,000 into a whopping $6.7 million.
Shareholders understand that this business has never paid a dividend in its entire operating history. Instead, the "Magnificent Seven" stock's leadership team, from founder Jeff Bezos to current CEO Andy Jassy, has opted to allocate capital to growth opportunities to increase revenue and profit far into the future. That playbook has clearly worked.
Details
And that's why long-term investors should own shares even though there is no dividend stream.
Source
Originally published at www.fool.com.