Say a publicly listed company announces they will *never* pay a dividend again and legally bind themselves to this promise. They fully intend to hoard and invest all cash that would otherwise be paid as dividends, forever. Do shares in this company have any value?

Finance books often say that, ignoring tax, dividends are irrelevant to shares' value since the owner of the shares can sell some of them to make their own dividends, but is this strictly so?

Submitted June 11, 2017 at 06:23PM by moomin100 http://ift.tt/2sRQgvz