Quote from nitro:
Let's talk real estate. I haven't got a clue how to do plumbing, or carpentry, or electricity, but I can buy a building. I can then rent the units and I have cash flow. I may then one day sell it for a higher price than I bought it. Do you see the difference? If a stock pays no dividends or shit dividends, that is like buying a building that I can't rent out! All I can hope to do is sell it to somone else for a higher price, and hope he doesn't care that it doesn't generate income. In other words, a ponzy scheme. But hey, as long as a new sucker steps up to the plate because "stocks are valued based on their earnings", it happens and will continue to happen all the time.
Cutten, this is from page 3. What I think nitro say is the dividend is guarantee money in all the time someone own the stock.