The ideal company doesn’t pay a dividend and if a company can make a 30% return on capital why would you want it to pay you a dividend? You by and large can’t make a 30% return on capital so you want it to retain the earnings and generate that return for you.
November 4, 2020
The Ideal Company Doesn’t Pay A Dividend
....You in my view you should never invest in equities for income. You should invest in equities for the greatest total return that you can get. So that’s the growth of the share price plus any income and if you need to spend some money sell some of your holdings, which I know isn’t rational to some people but I assure you is the correct way to do this.
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