How long after investing in the IPO stage of a successful start up, should you start gaining dividends?
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Q&A: How long after investing in the IPO stage of a successful start up, should you start gaining dividends?
How long after investing in the IPO stage of a successful start up, should you start gaining dividends?
The following is the answer:
Answer by Pierre O
It really depends. Some companies have gone years without paying dividends as they reinvested all the earnings to grow. Intel and Microsoft are good examples of this.
There is a theory that says that dividends are not the most efficient way to distribute income to shareholders as they are effectively taxed twice (once as earnings and once as dividends) so if a company has good investments with high returns, it should do that rather than pay dividends.
Answer by muncie birder
Maybe about 20 or 30 years. IPOs very seldom pay dividends for a very long period of time.
Answer by Caveat Emptor
Maybe never. Few companies that are “newly public” pay dividends initially. They are still in growth mode.
Answer by Jayson D
either:
next week
next month
next year
and the very most likely: next decade.
just because an IPO is succesful does not in any guarantee an obligation to distribute dividends.
Know better? Leave your own answer in the comments!
