I was wondering if I owned stock in a company such as PTC if I would gain anything by holding onto them?
They seem to have dividends as N/A so I'm wondering if they have some sort of re-investment on earning to buy additional stock or something like that where I'd make money WHILE owning them? Any benefit other than selling them for higher than I paid for them. Thanks.
- Anonymous6 years agoFavorite Answer
PTC is currently a "growth stock"...they do not pay a dividend, but investors still buy their shares because they expect the company to continue growing its revenue & profits, which they expect to continue pushing the price up...
Analysts who follow this stock seem to think it will continue to grow at a steady pace;
- I Like TurtlesLv 76 years ago
PTC has been a growth stock and is just coming off an all-time high. The numbers look okay on it, but the PE is a very high 31.8. I am expecting the stock market to have a correction in the next 3-6 months, and it might be a doozy - maybe 20%. If so stocks like PTC will take a major, major hit. Plus their company description on Google Finance is pure gibberish, I don't have a clue after reading it what this company does.
There was an interesting article in the WSJ recently - did you know that since 1926, the after-inflation return on stocks (again this is after inflation) has averaged 1.5% per year? That's right, 1.5%! Dividends right now average 2% (on dividend paying stocks which PTC is not). My takeaway from that is it pays to stick with dividend paying stocks for the core of a portfolio. Growth stocks are okay, but you need to choose them wisely and not have 100% invested in them.