Tell me what use is holding HDFC Bank if it is not giving out any dividends?
No dividends policy is for the company which are currently in huge growth stage and can re-invest.
HDFC Bank, TCS are matured companies, and they have no short of cash. They are in the stage where they need to return money to the shareholder through dividends and buybacks.
All the smallcaps we are investing in is speculation and hope that one day once they have 10x their earnings, then they will give us small dividend % like 2-3% which would be 20-30% for us since we bought the stock when share price was 1/10.
I see absolutely no point in owning a large matured company which does not give me dividends, as otherwise my holding is just a record in demat form.
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