I once read somewhere on an Amazon site that it is not the policy of the Amazon Corporation to pay a dividend. It has never paid a dividend and has given no clues as to whether or when it might do so.
Nothing wrong with that. They are quite open about it and if you continue to buy shares that is up to you. Also true, that the price of those shares rises, or at least has risen, so you make on capital value even though you don't get a divi.
But then I think that the founder of Amazon is very interested in space flight, has invested a lot of money in a space flight company and spends more time on shipping in space than he does on shipping consumer goods on earth. See reference 1.
So where does that money come from?
When Amazon floated, was he actually selling off some of his own shares, thus converting his own shares into his own money, which he could use for whatever he wanted?
Or does Amazon simply transfer a slug of dosh to Blue Origin from time to time? And if so, how does that appear in the Amazon balance sheet? Wouldn't the other shareholders get a bit cross? Wouldn't this be in contravention of whatever the Amazon articles of association might say?
Or does Mr. Bezos pay himself a sufficiently large salary to do it that way?
Maybe there is someone out there who knows the answer and who will save me the bother of further checking. Or perhaps the answer lies somewhere in reference 2, if I can bring myself to read it.
PS: Amazon are not alone in being a big and successful corporation which does not pay a dividend, although it is the third biggest such, after Google and the sage of Omaha (B).
Reference 1: https://www.blueorigin.com/. A rather unusual web site.
Reference 2: https://en.wikipedia.org/wiki/Blue_Origin.
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