Will Square Ever Pay A Dividend?

Square (SQ) has offered life-changing returns since its IPO, in 2015. During the last five years, the stock has rallied nearly 20-fold, from $12.50 to $242.

The surging stock is a result of the exceptional growth of the company and its still exciting growth potential.

Income investors have probably missed the breathtaking rally of Square, as the company does not pay a dividend. The absence of a dividend is fairly common among technology stocks, particularly in the early phases of their growth story.

Income-oriented investors who are attracted by the impressive return potential of Square probably wonder whether the company will pay a dividend anytime soon.

Continue reading this article to learn more about Square and the company’s future dividend prospects.

Business Overview

Square is a high-quality financial technology company. It offers payment and point-of-sale solutions in the U.S. and in foreign markets. It also provides hardware products such as the Magstripe reader, which enables transactions of magnetic stripe cards.

Square is an exceptional company. Most companies try to grow by expanding their core business but Square follows a different approach. It continuously tries to add new businesses to its portfolio by expanding the capabilities of its systems in order to grow its total addressable market as much as possible.

Square Ecosystems 2

Source: Investor Presentation

Square has greatly expanded the capabilities of its two major ecosystems, Seller and Cash App.

Seller was much simpler in the beginning but it now enables merchants to keep track of their payments, invoices, payrolls, and inventory. In addition, Square launched a business debit card last year and provides sellers with immediate access to their funds without the need to set up a bank account. The adoption of this debit card has increased every quarter since the launch, with sellers spending more than $250 million on their cards in the latest quarter. This business card has rendered sellers much more dependent on Square.

1 2 3 4
View single page >> |

Disclosure: Sure Dividend is published as an information service. It includes opinions as to buying, selling and holding various stocks and other securities.

However, the publishers of Sure ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.