Why Doesn't Amazon Pay a Dividend?

For years, investors may have shied away from buying Amazon (NASDAQ: AMZN) stock due to its really high share price. But earlier this year, Amazon made the decision to split its stock, making shares more affordable for investors.

If you're looking to add a tech stock to your portfolio as a means of diversification or eager to own Amazon, then you may consider taking that leap, now that the per-share price is lower. But one thing you won't get when you invest in Amazon is a stream of dividend payments.

While many companies that issue stocks pay dividends on a regular basis (with some even steadily increasing their dividends through the years), Amazon doesn't pay dividends to shareholders. But that's not necessarily a bad thing.

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Source Fool.com