In this article we are going to list the 15 biggest companies that don’t pay dividends. Click to skip ahead and read the 5 biggest companies that don’t pay dividends. Although these top companies are recognized by most of the general public, many people do not realize just how many people are involved or directly affected by a company’s success or failure. When an employee fails at his job, only his salary or reputation is affected. When a company fails, everyone from the employees to shareholders to the customers is affected in some capacity or another. However, in the same way, a company’s success also benefits all the people involved in the business.
The practice of paying dividends is one way that the top companies of the world can give back to their shareholders. Typically, a set amount of money per share is paid to shareholders with respect to the number of shares they own. This money is obtained from the profits the company has made. This amount can beany percentage of the net profit of the company, and is generally expressed as a percentage of the face value of the share. The decision of how much to pay is entirely the company’s discretion, and standards for which percentage is ideal also varies based on the industry or market the company is a part of. However, what is typically universal is the existence of shareholders in a company. When a person buys shares in company, he or she is now a member of the corporation and has some ownership attached, making him or her a shareholder. Every company has shareholders, but not every company rewards their shareholders with dividends.
This brings us to our list of 15 biggest companies that don’t pay dividends. Although paying dividends is indeed a very common practice, there are still many companies in the world that do not follow it. For some, this is a decision that has been a standard since the company began. These companies have never paid dividends to their shareholders and are transparent in their intent to not do so in the future. However, others have made the decision to not pay dividends only recently, most commonly a direct result of the Covid-19 pandemic affecting the company’s profits. Although some may find it difficult to believe, it is true that a company may be one of the best in the world but still struggle with making a profit. To see this in more detail, check out the 15 biggest companies that aren’t profitable.
Many people who learn about the practice of not paying dividends may wonder about the reasoning behind it. Why would a company even enforce such a rule? There may be several reasons why a company does not pay dividends, but the most common would be that they believe their profit is better spent on something else. Some companies prefer to spend most of their cash back into the business, spending on operations to further grow the company. The reasoning behind this is that if the company grows, the share price will increase, eventually benefitting shareholders. Other companies would rather keep cash so they can spend on acquisitions, or the act of purchasing another company.
So, it is not true that only those companies that do pay dividends will be successful and attract people to buy shares. In fact, in this article you will see the names of many very famous corporations which you can recognize. You probably never even imagined that they could be among those companies that don’t pay dividends to their shareholders. To prepare their ranking, we have used Fortune Global 500 as our source, ranking the companies based on revenue, assets, profits and employees of the company. So let’s look at the biggest companies that don’t pay dividends, starting with number 15: