The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “Do all stock shares pay dividends?” The simple answer to this is no, not all stocks pay dividends. In fact, many stocks choose not to pay dividends as a means to keep capital in the business and continue to fuel new investment, new ventures, new other business lines or products, etcetera. Now, most companies actually or some companies do pay dividends and a lot of companies pay dividends and it’s a means to give money back to shareholders, basically to reward shareholders and stockholders for their investment in the company. Oftentimes, a company might pay an annualized dividend of 5% or 6% and they may have a leveled dividend or they may start to increase that dividend over time. My opinion on this is always been that I think generally, companies that end up paying dividends could potentially better serve their potential equity holders by just simply buying back stock and r