Does anyone know of a company that can invest my money in 100% of stock and 0% dividend i.e nothing to do with Interest?

Asked by Preeti

2 Answers

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Answered by Kim Miller, CFP®PRO+ in Redmond, WA
Hi -
I'm not quite sure what you're asking, but on the surface it sounds like you want to invest in stocks that pay no dividends. There are many publicly-traded companies that pay no dividends. Owning stock that pays no dividends means you would receive no income from owning the stock and pay no income taxes unless you sell the stock at a profit. Please don't take this as investment advice, but an example of a quality company that pays no dividends is Berkshire Hathaway , the conglomerate run by Warren Buffett. Berkshire Hathaway has two classes of shares:
"A" shares and "B" shares. The A shares currently trade at about $223,000 each making them uneconomical for most investors. The B shares however, currently trade at about $149 making them quite affordable. A company that does not pay a dividend has more of their profits to reinvest in future growth which usually leads to an increase in their share price. Good luck! | 01.21.15 @ 00:02
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:22
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi Preeti,

There are several companies that do not pay dividends and are 100% growth. Some folks call this tax-efficient investing. Of course, if you ever decide to part with any of your shares, the $$ amount should be more that what you purchased them for with or without taxable gains (losses).

Brk.a & Brk.b are both great. There are also many others. Some questions for you:

1). What is the total amount you have available to invest
2). What is your MARR- Minimum Acceptable Rate of Return?
3) Where are you financially?
4) Where do you need to be financially?

For example:
100K invested @ 15%CAGR will double to $200K in ~5 yrs
$1ooK invested @ 5% CAGR will double to $200K in ~14.yrs

Just adjust the time, CAGR, & amounts per your needs.

We can help you with any of these. Please, send us a message to discuss.

It's not what you make, It's what you keep that determines your lifestyle.
| 03.18.16 @ 22:31
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:22
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Answered by

Kim Miller
Kim Miller, CFP®PRO+ in Redmond, WA

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