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by supercanuck 2840 days ago
In theory, you are paying for the future dividends.

https://en.m.wikipedia.org/wiki/Dividend_discount_model

In reality...

https://en.m.wikipedia.org/wiki/Greater_fool_theory

1 comments

Actually, in the case of Apple, they announced a sizable share buyback earlier this year, so even if you only plan to hold the stock long enough to sell it for a capital gain you might still be receiving a dividend. AAPL is one of the worst examples of the greater fool theory at work, given that Apple pays a regular dividend, buys back stock, and has a relatively low P/E ratio for a tech company.