Netflix Has No Dividend. Here's Why Long-Term Investors Should Own It Anyway.
Despite its recent headwind, the streaming giant still offers more growth potential than plenty of other tickers categorized as growth stocks.
Overview
There's no denying Netflix's (NASDAQ: NFLX) highest growth days are (probably) in the past rather than in the future. Not only did its second-quarter year-over-year revenue growth of 13.4% -- the weakest growth rate of the past four quarters -- to $12.56 billion miss analysts' already-lowered expectations of just under $12.59 billion, but revenue guidance for the quarter currently underway was also disappointing, at only 11.7% better than 2025's Q3 comparison.
Sensing this headwind could mark the beginning of a more sweeping slowdown for the entire streaming business, Netflix stock has performed poorly since April, and really, since reaching a record high in the middle of last year. That's when the whole industry's transition from its growth phase to its slower, fully mature phase began to become clearer.
Details
Nevertheless, long-term growth investors might want to own a stake in the streaming giant anyway, despite its complete lack of dividends. Here's why.
Source
Originally published at www.fool.com.