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According to finance theory the investment returns for shareholders is independent of whether or not a company pays a dividend. It may surprise some on this forum but I actually prefer to invest in companys that invest their profits in growing the business although I own almost all dividend paying stocks. From 2001-2005 when "growth" was out (it never really is, just have to find the right ones methinks) I started learning about income stocks and I've been trading those ever since. I've just found them easier to analyze so that's why I own them. However, I still prefer "growth" type investments. I recommended VLO awhile back even though they pay a paltry dividend and they're widely held. I don't think the U.S. is going to build a lot of new refining capacity in the future but it seems obvious that the U.S. will need more as the years go by. I think this put VLO in a great position and I think they're being prudent by not paying a big dividend. Not trying to hijack the thread just pointing out one consideration regarding whether or not a company should pay a dividend. IMO whether or not a company should pay a dividend is a fairly complex issue. REITs and BDCs (buisness development companys) are required to pay out 90% of their taxable income as dividends in order to maintain REIT status and BDC status respectively. They're taxable income is not taxed at the corporate level. Perhaps I'm wrong but it seems like buying REITs and BDCs in a Roth IRA account would mean that taxes would never be paid on the profits of REITs and BDCs for the shares owned in Roth IRAs.