The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again and welcome back to the daily call from Option Alpha. Today, we’re going to answer the question, “How do you make money buying non-dividend paying stocks?” This is a question I think a lot of people have. In fact, this recently came up at a family barbecue because somebody asked in our extended family. He said, “You know, I was talking to somebody…” They were talking to their financial advisor, whoever and they just didn’t really understand why people would buy non-dividend paying stocks and I think this is actually a very old mentality, meaning that people in the old days, I guess maybe 30 or 40 years ago, the big thing was you had to buy stocks that paid a dividend because you wanted that income, you wanted that cash flow. Nowadays, not all stocks pay dividends. We know this intuitively. I think some people are starting to learn this which is actually kind of interesting that this is not something that everybody knows and everybody understands the market. But there's co