Capitalism 2 and Capitalism Lab Forum

Hi!
I would like to know, is there a connection between dividents and stock price?
In my game i want to try out, if a high divident payout ratio would affect on stock price.
I thought that if the payout ratio is high, than the more people would want to buy my stock, so its price would go up.
But it seems, than no matter, if you have the high payout ratio or none, the price will be the same (in my game i've tried both ways in the same period of time - no differance.)

Both in game and real life, giving more dividends doesn't significantly effect the stock price. An increase in earnings does.

I agree dividend has very little impact on the overall stock's price.
What drive stock price to increase is profitability or revenue growth in the real life.
In our games, it is more correlated to book value or the equity per share.

Thanks!
So basicly, in this game devidents itself not musch of use when person has not own 100% of its company. It is a waste of money.

It is another vehicle to move cash from corporate profit to individual investors. I won't say it is a totally waste of money. It is definitely cold cash going somewhere to someone. So it has its purpose.

I agree with you in situations, when a person owns 100 % of a company. In this situation it is a very good way to move cash from corporate profit to person's pocket.
But when there are many shareholders, it is better to use a high salary instead of devidents.