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I am just wondering if the PE ratio became extraordinarily high because high growth tech companies now are a major part of all of the large indices. Did you eve
by pauldickwin 6y ago
I am just wondering if the PE ratio became extraordinarily high because high growth tech companies now are a major part of all of the large indices. Did you ever think about that?
- deleted 6y ago[deleted]
- matthewbauer 6y agoThat's definitely the cause of it, but it doesn't make sense to me. Once you're on S&P 500, how much growth can you realistically do? I don't see why investors don't make Google & Apple pay dividends.
- svachalek 6y agoApple does pay dividends, has for years. Is also buying back a lot of stock which is another form of investor return. Google does buybacks too but on a less systematic basis afaik.
- jakub_g 6y agoApple does pay dividends. Google and Amazon do not. https://www.nasdaq.com/market-activity/stocks/aapl/dividend-history https://www.nasdaq.com/market-activity/stocks/aapl/dividend-... Regarding dividends, in theory when company spends $1 per share on a dividend, its stock price should go down by $1 to compensate for this. So receiving a dividend is kind of like forced selling a small portion of your stock (except that you don't pay the transaction fee).