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Dividends are not some magic; they are taken out of the share price. There's not really a difference between reinvested dividends vs. no dividends at all. And non-reinvested dividends are less optimal as you'll pay taxes on them, so you actually have less net worth from collecting and not reinvesting dividends vs. either reinvesting them, or investing in a company which doesn't yield a dividend.

It's a fallacy that many people fall for though. See Berkshire Hathaway for the prime example.

Some public companies choose to return cash to shareholders through share buybacks rather than dividends because it's more tax efficient.

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