Netflix (NFLX) is a good example of this, as the company doesn’t currently pay a dividend and hasn’t since it went public in May of 2002. This doesn’t mean that investors should always avoid non-dividend paying stocks.
In addition, the company has spent heavily on creating its own content, which has been critical to Netflix’s success at growing its subscriber base by a high rate. The company also holds the leading share of total US TV time.
Some companies, such as Dividend Aristocrats like Coca-Cola (KO) and Johnson & Johnson (JNJ), have increased their dividends for several consecutive decades. In fact, both Coca-Cola and J&J are members of the exclusive Dividend Kings list.