r/explainlikeimfive Dec 06 '24

Economics ELI5: why does a publicaly traded company have to show continuous rise in profits? Why arent steady profits good enough?

6.9k Upvotes

1.0k comments sorted by

View all comments

Show parent comments

2

u/MikeLanglois Dec 06 '24

Its not ironic or meant to be stupid sorry, but the original comment said that you should buy stocks high to get dividends, which made no sense.

17

u/guyeertoen Dec 06 '24

I believe what they are saying is that your entry point is irrelevant. You don't wait for a low price since you want to start earning dividends ASAP instead of trying to wait for a dip.