In my opinion, this is the biggest flaw of the system. For many investors, a company is less about what it makes and more like a process to grow their money. Even when a company becomes profitable, there's always pressure to make it even more profitable quarter after quarter.
You do get the fact that a company with no growth but paying dividends will be worth (including the dividends you extracted) exactly what you paid for?
It would be worse than buying a bond: you'll get the risk of equity with the returns of a bond.
In my opinion, this is the biggest flaw of the system. For many investors, a company is less about what it makes and more like a process to grow their money. Even when a company becomes profitable, there's always pressure to make it even more profitable quarter after quarter.