Why AutoZone Is a Top-Yielding Stock -- Without Paying a Dividend!
Dividend stocks are great because they provide much-needed income for investors. So you might think I'm crazy to call AutoZone (NYSE: AZO), which makes no payments to shareholders at all in the form of dividends, a great dividend stock. But hear me out, because as I see it, there's more to a "dividend stock" than paying a dividend.
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Theoretically, it should make little difference how a company returns cash to investors. Franco Modigliani and Merton Miller, both Nobel-prize winning economists, created the dividend irrelevance theory, which found, all other factors equal, the method a company returns cash to shareholders should not matter.
Source: Fool.com