Dividend Downfalls: Amazon, Meta and Alphabet

Corporates don’t have to pay dividends to be in demand by investors. Such Tech giants like Facebook, Amazon, and Google confirm this theory as both institutional and private investors are willing to include these shares in their portfolios. So why do such large corporates not pay dividends? Management prefers to invest corporate profit rather to award itself and shareholders by redistributing profits. In other words, shareholders may only count on rising share prices, or on some dividend in the distant future. However, when these stocks perform well they tend to upset investors by a lack of dividends.