Dividends are the basis of value for stocks even though many stocks that don't pay dividends have substantial value.

Name: Dividends are the basis of value for stocks even though many stocks that don't pay dividends have substantial value.
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Question

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Stocks are valued based on the present value of their future cash flows, which includes dividends. However, stocks can also be valued on their potential for future growth, which can give substantial value to stocks that do not currently pay dividends.

Dividends Are the Basis of Value for Stocks Even Though