How Do Investors Make Money Without Getting Dividends?

Simple. By biding their time.

A dividend is a slice of a company’s earnings that the company elects to return to its shareholders. Dividends are typically paid out by seasoned, mature companies that have been in business for many years. Think: IBM, Procter & Gamble, Microsoft. When a company’s management team can’t drum up additional growth opportunities inside their firm, they often start paying dividends as a way to interest shareholders.

Investors who favor dividends are known as “income investors.” They favor dependable cash infusions from their investments over the hope for those investments to experience explosive growth and higher valuations.

When a company doesn’t pay dividends (they’re not required), it usually plows the extra cash back into its operations with an eye towards giving investors much higher value in a more robust company down the road. In fact, there’s an entire segment of investors who prefer to buy stock in companies that don’t issue dividends. They’re known as “growth investors” and want to back companies that are concentrating on product development, strategic acquisitions, and expansion.

Companies that are focused on growth, and scaling operations, seldom pay dividends. But, that doesn’t mean their stock isn’t worth buying. Those companies are busy growing the value of their business—and therefore the value of your stock. Buying stock in companies that don’t pay dividends, but are intent on building their business, can be a win-win for both investors and the company. Think: Berkshire Hathaway, Amazon, Chipotle. None of them pay dividends, but their stocks… well:

If you’d bought $8000 of Berkshire Hathaway as an early investor, those 1000 shares are now worth an eye-popping $264,280,000 (May, 2020). But zero dividends.
Amazon doesn’t pay dividends either… has the value of their stock increased?
Yes, because they reinvest their profits straight back into the business, giving their shareholders a much more attractive reward than dividends ever could.
Between July 2019 and July 2020, the fast casual chain Chipotle, drastically blew the broader market away by reporting a return of 43.3%, while the S&P 500 posted an anemic 4.7%.
Since March 2020, the restaurant industry has suffered due to the pandemic
They’ve opened 19 new restaurants in the first quarter of 2020They opened their 100th Chipotle in July
They’ve hired about 8,000 new employees since the pandemic took hold
But again, no dividend, because Chipotle’s a high-growth stock that’s thriving

So, “income investor”? “Growth investor”? Which are you?

Do you want a dividend drip, or a shot at explosive growth?

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RISKS & DISCLOSURES

We’d rather use this space to tell you more about our awesome restaurants and how passionate we are about bringing Wiley Area Development LLC dba Tasty Equity to the world, but our lawyers asked us to do this instead. So, make them happy by reading this while we get back to doing what we do best: opening and helping to run restaurants.

The information on this website was created by Wiley Area Development LLC dba Tasty Equity to assist with marketing our Regulation A share offering. The text on this website is a summary but does not contain all of the terms of our securities offering. In order to review all of the terms of our securities offering, you should review our offering circular that contains all of the terms, conditions, risk factors, and disclosures that you should read and understand before you invest in our company. The offering circular is available to download here for you to read and review before you invest. If the offering circular has been filed with the United States Securities and Exchange Commission, so you can also view it on the SEC’s website here: https://www.sec.gov by searching for “Wiley Area Development” in the search box on the top of the SEC’s website. The offering circular explains that we are offering 1,000,000 units of Class B membership in Wiley Area Development LLC dba Tasty Equity at a price of $5.00 per unit with a minimum purchase of 20 units per investor.

The SEC does not pass upon the merits of, or give its approval to, any of the securities we are offering or the terms of our offering, nor does it pass upon the accuracy or completeness of our offering circular or other selling literature. The securities we are offering are offered pursuant to an exemption from registration with the SEC; however, the SEC has not made an independent determination that the securities offered in our offering circular and in our offering are exempt from registration.

When you review our offering circular, please review all of the risk factors before making an investment in our company. An investment in our company should only be made if you are capable of evaluating the risks and merits of this investment and if you have sufficient resources to bear the entire loss of your investment, should that occur.

Generally, no sale may be made to anyone in our offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(c) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

Our offering circular does not constitute an offer or solicitation in any jurisdiction in which such an offer or solicitation would be unlawful. No person has been authorized to give any information or to make any representations concerning our company other than those contained in our offering circular, and if given or made, such other information or representation must not be relied upon. Prospective investors are not to construe the contents of our offering circular, or of any prior or subsequent communications from our company or any of its employees, agents or affiliates, as investment, legal, financial or tax advice. Before investing in our offering, please review our offering circular carefully, ask any questions of the company’s management that you would like answered and consult your own counsel, accountant and other professional advisors as to legal, tax and other related matters concerning this investment.