I am just wondering if the PE ratio became extraordinarily high because high growth tech companies now are a major part of all of the large indices. Did you ever think about that?
That's definitely the cause of it, but it doesn't make sense to me. Once you're on S&P 500, how much growth can you realistically do? I don't see why investors don't make Google & Apple pay dividends.
Regarding dividends, in theory when company spends $1 per share on a dividend, its stock price should go down by $1 to compensate for this.
So receiving a dividend is kind of like forced selling a small portion of your stock (except that you don't pay the transaction fee).
Apple does pay dividends, has for years. Is also buying back a lot of stock which is another form of investor return. Google does buybacks too but on a less systematic basis afaik.
