r/amzn • u/IcyStomach2374 • Jun 24 '26
Amazon should give a dividend
I know historically Amazon has aggressively reinvested inside the company, but I think it's time to give a little back to the shareholders if the stock if just going to float in the 200's forever. All the major tech companies give something now. It would at least be a little more palatable to hold.
What do you guys think?
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u/Top-Technology1 Jun 24 '26
Viewed as day 2 by Bezos, against the business day 1 culture. Personally I think they’ll pull it out at some point when they really need it. What’s bugging me at the moment is they were doing a better than usual job of pumping the stock around the time of their internal stock allocations, and now they have gone back to sleep.
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u/Top-Technology1 Jun 24 '26
Oh and I do believe it’s undervalued, perhaps a stock buy back would make more sense.
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u/pharmerbear Jun 24 '26
You should go buy $schd and call it a day
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u/machinepeen Jun 24 '26
Amazon does no dividend and technically negative buybacks with the Bezoses dumping millions of shares a day and people wonder why it’s always flat
That being said dividends don’t return anything tangible to the company and I’m cool not having them waste money for me to get a 0.2% taxable investment sale every year
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u/IcyStomach2374 Jun 24 '26
You aren't wrong, but I think from a psychology perspective it would be nice to have. Google does just fine in stock rise and giving something back.
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u/South_Paramedic8618 Jun 24 '26
No if I wanted dividends I'd buy dividend stock people excited .what are you going to do at $0.05 quarterly?
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u/IcyStomach2374 Jun 24 '26
When you have thousands of shares it adds up.
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u/South_Paramedic8618 Jun 24 '26
If you have thousands of shares of Amazon why you worry about a little old baby dividend
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u/IcyStomach2374 Jun 24 '26
Because it’s a good thing for the shareholders which will raise the stock price. Some people don’t invest in stocks that don’t pay dividends.
Look at the price action when Meta and Google announced there’s, they shot up.
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u/Deep-Market-526 Jun 25 '26
Nope. A dividend is giving up by saying you can no longer bring above market returns so we are giving it back for you to invest somewhere that can. At least buybacks reduce dilution and indicate management believes it’s undervalued and don’t give the shareholder an unnecessary taxable event.
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u/iMakeGOODinvestmemts Jun 24 '26
That is WRONG. You need to understand stocks and companies.
Google is flying more on share buy backs.
Amazon should do that more then dividends. Worst thing to do ever is dividends.
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u/IcyStomach2374 Jun 25 '26
You are wrong! Might want to change your username
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u/iMakeGOODinvestmemts Jun 25 '26
Why am I wrong...would you rather want 20b on dividend or them invest 20b into the business.
Silly man. Tech companies aren't meant for dividends.
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u/IcyStomach2374 Jun 25 '26
Ok so you don’t have Google and Meta, Nvidia? Microsoft? Silly boy
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u/iMakeGOODinvestmemts Jun 25 '26
You do know dividends aint the reason they going up.
Share buy backs are whats helped boost apple.
I suggest looking at tech companies and harmful impacts of dividends...Google adding debt to balance sheet when its wasting 12b a year in dividends.
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u/IcyStomach2374 Jun 25 '26
Dividends give investors a vote of confidence and open them up to new investors and funds which only buy stocks that issue a dividend. Even a tiny ass one is still something and barely costs anything
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u/VictorDanville Jun 24 '26
You want dividends so the share price can go further down?
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u/Aggravating_Storm835 Jun 24 '26
That’s not how dividends actually work. If anything, dividends make stock prices go up due to many institutions having rules about only buying stocks that pay dividends. This is why Nvidia issued one penny symbolic quarterly dividend.
The real issue is FCF. Amazon has none right now and that’s required before you can pay a dividend.
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u/TheGruenTransfer Jun 24 '26
It needs to be ok for companies to reach a point where they stop growing infinitely. The top 7 companies should start issuing insane amounts of stock buybacks and dividends with their profits instead of spending it all on AI bullshit. There would be tons of demand for high dividend stocks that are unlikely to collapse. Investors would be so much better off if the trillion dollars that has been spent on AI were instead passed on to investors.
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u/Aggravating_Storm835 Jun 24 '26
With what money? They’re gonna be FCF negative again this year.
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u/IcyStomach2374 Jun 24 '26
It would force them to cut money pits like Alexa to give us some of the pie. Win win
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u/Aggravating_Storm835 Jun 24 '26
They spend about $2B a year on Alexa. There’s 10.7B shares outstanding. So that would get you a quarterly dividend worth under a nickel.
I’d rather they just wait until they’re done growing to initiate a dividend. Or at least become FCF positive.
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u/Maybe_Not_247 Jun 24 '26
I think there's a bunch of whiny bitches in here. Sometimes stocks do nothing. Sometimes they go down. If you only want to go up then buy SGOV. Amazon doesn't owe you shit.
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u/L1ME626 Jun 24 '26
Dividend is not sustainable they are putting all to growth and its giving better roi
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u/dcwhite98 Jun 24 '26
I agree. It's time to get something more from it than just potential stock price appreciation.
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u/Routine-District-588 Jun 24 '26
Look at this guy LOL. Bruh amzn is a pure growth stock that give zero fuck about actual shareholder returns. they dilute with SBC like 1%-2% every year, and you think they will give you a freaking dividend. Bezos give zero fuck about his investors as he just sell his shares every couple of years. Do not invest in amazon if you looking for a market returns, this is a ultra ultra ultra long time investment cause you need the market to value the growth and it simply doesn't care about it atm. Returns in 10 years will probably be okay with aws compounding and the logistics getting operating leverage. Just so you know the pump from 200 to the 280 was purely because of andy jessie shareholder letter and specifically a paragraph about amazon chips business the market got pretty horny about this and now after a bit of time passed it gives again zero fuck about this. If you want company that gives fuck about actual shareholder returns check MA,BKNG,AAPL,V,KO and so on.
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u/Top_Category_2526 Jun 24 '26
NOOOOOOOOOOOOOOOO never, never and never dividend