Who would invest in or create a company that would never pay a dividend and never bought back its stock? How would shareholders ever yield gains from their investment?
Short of some entity buying all stock and taking the company private (to then withdraw profits), there would be no way to return profits to shareholders.
The companies currently not doing those things are in a growth phase, with the expectation that in the future they probably will be issuing dividends/buybacks.
Short of some entity buying all stock and taking the company private (to then withdraw profits), there would be no way to return profits to shareholders.
The companies currently not doing those things are in a growth phase, with the expectation that in the future they probably will be issuing dividends/buybacks.