Does Netflix pay Dividends- Netflix is a subscription streaming entertainment platform that offers a wide variety of tv shows of different genres all over the world.
With the number of shareholders, a big platform like Netflix has, various people, must be wondering if it pays dividends.
The answer to this question is No. Netflix does not pay dividends.
Netflix has never paid dividends or given any report of doing so over the years. Considering how big this streaming platform is, one would assume that it pays dividends but no, it doesn’t, and also doesn’t seem like they are considering it as the case may seem.
Does This Mean That Netflix Has No Shareholders?
On the contrary, Netflix does have shareholders which include the Individual insider shareholders who are in the senior management positions to the Institutional shareholders who own 83% of Netflix shares.
Why Do Netflix Not Pay Dividends?
One of the main reasons a company would not pay dividends would be because of financial problems and a struggling business. However, this is not the case for Netflix and this is why it still has top shareholders to date. Netflix is a large streaming platform that gets its main source of revenue from its massive amount of subscribers ranging from $8.99 to $15.99 per month. This should be enough to pay dividends. Netflix, however, has no report of paying dividends.
The Individual shareholders are:
Leslie J. Kilgore
David Hyman
Greg Peters
The Institutional Shareholders are:
Capital Research Global Investors
Vanguard Group Inc
Blackrock Inc
How do these Share Holders make their Profit?
They already own part of the company so Netflix having to sort out their part of the shares is not an issue to them. They have bought and owned some parts of the shares.
Leslie J. Kilgore owns a total of 35,196 Netflix shares, representing 0.02% of the company.
David Hyman owns a total of 31,610 shares, representing 0.01% of the company’s total shares.
Greg Peters owns a total of 13,090 shares.
Capital Research Global Investors owns a total of 37.9 million shares.
Vanguard Group Inc owns 34.1 million shares, representing 7.98% of total shares.
Blackrock Inc owns 28.4 million shares, representing 6.5% of total shares.
Will Netflix Ever Pay Dividends?
Although Netflix is a huge subscription streaming platform, it still requires cash flow to cover payments. Netflix does not offer consistent cash flow so it would struggle to return cash to its shareholders every quarter. Also, Netflix does not run Ads and this may also be a huge factor in terms of paying dividends.
Is Paying Dividends Ever Going To Be A Necessity For Netflix?
Netflix has been growing and still growing regardless of paying Dividends or not so this growth can continue. However, it has the potential to serve better investors as a dividend stock with a moderate growth rate.
Netflix is still one of the highest streaming platforms in the world making it loved by many. There must be a lot of individuals looking forward to this platform finally looking into paying dividends. This would increase the growth and satisfaction of the platform for years to come.
The constant questions may just make Netflix finally put paying dividends into consideration or it could also never consider paying all its net income as dividends.
Frequently Asked Questions:
1. Can I still become a shareholder at Netflix?
Yes, you can still be a shareholder at Netflix. Netflix has opened the platform, welcoming shareholders that feel they have the capacity to buy these shares.
2. What are the necessary steps to becoming a shareholder at Netflix?
• Find a good online broker.
• Open your brokerage account.
• Deposit money to your account.
• Buy the Netflix share.
• Review your Netflix position regularly.
3. Is Netflix a good investment as a shareholder?
The answer to this question is relative.
If you need the investment to start paying early enough, Netflix might not be the best investment for you but if you are ready to be patient, it might just be the right platform for you. You have to be ready for anything.
4. Does Netflix earn enough to pay dividends?
Netflix does not earn stable enough to pay dividends. Since it is not an option yet. It could also be risky.
5. Do I have to be a certain age to become a shareholder?
There is no given age to become a shareholder at Netflix but 18 and above should be the appropriate age.
6. Can the absence of no dividends affect Netflix?
Netflix is already a huge platform that has come a long way with a lot of fans. Whether it pays dividends or not, it already has millions of subscribers. The absence of dividends is just another factor to be looked into.
