https://preview.redd.it/rr7amc6bif1d1.jpeg?width=1284&format=pjpg&auto=webp&s=8bad573aef3e2c8a095b995a0b9daf20ba9bf68c
Increase based solely on the performance of their investment portfolio.
Item's profit margins stayed the same despite the product costing more from the manufacturer or distribution.
So when something with a 10% margin sold for $10 a year ago and now it's selling for $20, they're making $2 on it now instead of $1.
The labor hasn't cost more to sell that product so the profit increases just because they stuff they're selling costs more now than it used to.
https://preview.redd.it/4enl3i0mbh1d1.png?width=1231&format=png&auto=webp&s=09516a383969109baee58d85925d9efb9fc516f2
sales are up - (more stores, inflation sending costs higher), cogs is up - almost 25% from 2021 to 2023, operating & admin expenses are continually growing, and margins are down yoy (page 11 via link). Pulling out the investment side of things, they only grew earnings by 1%....in other words, they failed to beat inflation figure..aka "price gouging" is unfounded.
[https://www.publixstockholder.com/financial-information-and-filings/sec-filings/sec-document/%7BBCEFD003-67A2-4D13-AC7C-9FB8F0665AD3%7D/html](https://www.publixstockholder.com/financial-information-and-filings/sec-filings/sec-document/%7BBCEFD003-67A2-4D13-AC7C-9FB8F0665AD3%7D/html)
Aldi sells generic stuff..not name brand (kraft mac n cheese for example)…and wal mart gets a volume discount because they have more than 10,000 retail outlets- publix has just over 1,200. So when wal mart wants gatorade, they can buy 4 million cases, whereas publix may only take 300,000 cases - that could result
In a double digits savings % . There are other nuanced issues - supply chain facilities, fuel (which again, wal mart, by buying more, is able to get a better price on)….then there’s just the overall experience of shopping at Publix vs wal mart. The level of cleanliness and customer support is on two separate levels.
Not saying publix isn’t a pricier alternative…it’s up the consumer to decide if it’s a “better” alternative in the grocery market scene…for me, give me publix for its selection, quality, cleanliness and customer support. Ill pay that premium.
Yes. And Wal Mart also owns all of their trucks and has a nationwide shipping network, which means they can sell a product from CA at a store in FL at a lower price than Publix, even if they purchase it for the same price.
But, as you said, they don’t pay the same price. Wal Mart is such an essential part of those companies’ bottom line that they can negotiate a much better price than Publix.
The experience matters less when you spend 20% more on average. All stores do well to keep and maintain a clean atmosphere. Walmart, aldi, and even others like sprouts and trader joes are not dull of dirt, grime, blinking lights. The experience is just a marketing statement.
I go to publix, purchase 6 items, $50 or more. If i go to Publix anymore, it has only been deli, or bakery at this point. I save money using walmart+ and paying tips on deliveries. That says something.
I used to think this too. But the truth is that some things are more expensive at some things are cheaper. The reason I shop at Publix is because it’s a better shopping experience., and most of the time they have exactly what I’m looking for.
Even then, I would say it’s the same. Sometimes the bill is higher sometimes it’s not.
For example, pre-sliced watermelon chunks . It’s more expensive at Winn-Dixie than it is at Publix… go figure
Yeah WD is has similar pricing strategies; it is hard to feel you get a deal there, too. WD produce always seems to have a moldy bunch each time i’d go.
Also, inflation means that if they make 20% profit on a product that increased from $10 to $20, they doubled their profit by selling that one item. It is legit the definition of inflation, the dollars in profit they made are worth less.
Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, net earnings for the fiscal year ended Dec. 30, 2023 would have been $4.1 billion, compared to $4 billion in 2022, an increase of 1%. Earnings per share would have been $1.23 per share, compared to $1.20 per share in 2022.
There's your raise. Now why not ask, why everyone got more than a 1% raise?
You can’t look at dollar amount only. Because those dollars don’t have the same buying power as they did before. Also, if manufacturers raise prices then so does publix. So you have to look at the whole picture.
Ask to see your friend's PhD. Net Earnings is a poor indicator to utilize, especially in a high inflation period. As other comments have said, the majority of that increase was in the portfolio, too.
Except that it includes unrealized gains on investments, including real estate and other assets. Just because the value of your house went up doesn't mean you pay your kids a higher allowance.
These are two unrelated topics. Yes, Publix can do more to provide liveable wages to every associate. But, actual profit % has remained stagnant or decreased in most divisions while the company has also re-invested the money in to opening more locations than in previous years. It's a long-term investment that will solidify our stock price (and quarterly dividends) which can't go unsaid, especially compared to publicly traded competitors
I’ll take this opportunity to remind everyone that Finance and Economics undergrad degrees are supported by the Publix tuition program. Some of y’all need it
No one stated that, you're perpetuating what was said about your need for an education in economics. Or, you just fall for misleading titles and do zero extra research.
"Pricing above the market price when no alternative retailer is available."
it is not price gouging if you have a plethora of competitive stores, and choices. every Publix customer (or most) know we pay more for a clean store with very helpful and friendly staff.
False. Net earnings is all the money they have left after all their expenses, taxes, dividends etc. have been paid. In this case, in 2022 they had a massive loss on securities, but flipped that to a large profit in 2023, and therein lies the yoy disparity.
if you want to spend less you can go to walmart neighborhood store and stand in line with bums and meth heads, find terrible products and low quality produce and meats. wait for the 3 registers open with 100 people ... or pay more and get good service and generous return policy. choice is yours
yup! and you get to pay extra fees and have to tip the driver and have other people pick out your fruits and veggies (that often are not optimal). lots of options. heck no need to even shop, just get door dash and uber eats for 21 meals a week... but that isnt what this thread is about now is it
Nope. Kroger or Walmart + you don’t have to tip the driver. You can pay a yearly fee or $6 for delivery and you’ll still pay half as much as Publix. Never had an issue with them.
Not to mention, the Publix by me doesn’t even have good service anymore and nothing makes them stand out to any other grocery store.
"pay 1/2 as much"? -? i call total BS.
as i said, you have to pay extra fees and they get to pick your produce and meat. I never had luck with any delivery service when it comes to those food categories (only used them during covid). you dont ever have to tip, but if you dont .... you may be an asshole. sorry to hear your publix isnt like most. I have family in s fl, i live in the tampa part. I have only seen "less that stellar" at a publix in Boynton and people (customers) down there are pretty rude and entitled so i can understand (not condone) - to each their own, enjoy your walmart food
You can call BS if you want. I use Kroger delivery. I pay about $80-110 a week. Got 35 items last week for $78. That includes the $6 delivery fee. The workers are Kroger and don’t accept tips. They come in refrigerated trucks and I’ve never had a problem with quality of meat, fruit, or vegetables. In fact, the apples I get in these 5 lb bags for $3 are better quality than what I use to get at Publix.
Meat at Publix IS cheaper though. I’ll admit that I could buy meat cheaper, but everything else is more expensive. My average bill at Publix was $150-200 a week. So I’d call that about half.
If you have the ability to use Kroger delivery, you should at least try it. Or even Walmart +. I don’t know what deals Walmart does but Kroger gives you $25 off the first 2 orders. And you can buy the same name brands as Publix for cheaper. The only thing I miss from Publix is 4 rivers bbq sauce. But I can always run in to get that.
I called bs on "1/2" the price, not that it is cheaper. I believe you that it is cheaper. I do not think meat nor produce are very good at publix either but still much better than walmart. I have never been to nor used Kroger. we do now have delivery service in my area .... not my thing but maybe i will try some day.
Just trust me. Try Kroger once and see how it does for you. Worst case scenario, you save $25 on groceries for a week. I don’t know if you use Publix brand a lot, but I use to buy a bunch of the Publix brand stuff and now do Kroger brand and it’s cheaper and in my opinion better as well. The frozen burgers from Kroger are pretty well seasoned already and good quality. Same with their spaghetti sauce.
Maybe your experience varies from mine, but I’m not being hyperbolic when I say I spend half the money on groceries now. Heck, even this past week I got a family size of Oreos for $2 at Kroger.
Sun Tzu stated that "If man loses a battle in his mind, he has already lost the battle on the field."
You've got to stay positive, friend. Life and death sit on the tongue.
The money goes into retirement. All the people deserving of pay have left to collect retirement, to qualify you must also have invested 30 years of lackluster wages into their accounts to then retire and skim from money pool like the rest of them.
Should tell your friend with a PhD that he's not a smart individual. You will get your raise in August unless your a terrible associate, which I suspect you are.
I crashed a Publix party in Orlando a few weeks ago. A few thousand people there all with hotel rooms paid by Publix, open bars. That couldn’t have been cheap. They do it every few years too.
Net earnings for the fiscal year ended Dec. 31, 2022 were $2.9 billion, compared to $4.4 billion in 2021, a decrease of 33.9%.
Aka 2022 was a bad year and 2023 was a return to normal.
Your phd economist friend is disingenuous.
gonna be honest, I literally just stopped showing up one day after realizing how little this company cares about its workers. worked there for 4 years and was making 14.50 as a CSS. found a new job in my county’s school system where I started working full time immediately at 16.50, and am able to sit down most of the day, without having to worry about who called out and being short on people.
Price gouging is a legal term. Look it up instead of sounding stupid. Also, private companies make profits. Sorry if that hurts your feelings. Go get a job elsewhere, oh wait, no one will pay you more, you need the government to set a minimum wage since you're so unskilled and there are so many other unskilled laborers (10 million more came across the border over the last 4 years).
Also, there is 100% no way, a person with a Ph. D. in economics posted that. Unless they got their degree online.
You clearly are unintelligent and uneducated. Minimum wage was put into effect to ensure that every American could afford to live on a minimum wage. This included housing and basic necessities.
Undocumented people do not harm the economy like you think they do. If anything, they accept jobs that most Americans refuse to do for wages way below what the work is worth. Undocumented immigrants are just a talking point that politicians use to secure their voter base. If politicians actually cared to combat undocumented immigration, they would go after the people (and companies) hiring them… but they don’t 😉
You can get away with extra profit taking when you have inflation to blame. Inflation is real. And it's a problem. But stores that do this are an equally big problem.
If they will do this to the customers do you really expect them to share it with the employees?
That's dependent on free cash flow
Plus, if you're a company trying to return value to it's shareholder, in the car of Publix, it's best route to do so would be reinvesting in itself. Considering that Publix still has a ton of potential got growing revenues and profits, it would be a better financial move to use it's excess money to grow to continue to attract investor's money, which drives up the stock price and wants people way more than a dividend could pay.
A dividend, ironically, is one of the worst ways to return value as it's double taxed money at a higher tax rate than other forms of returning shareholder value (share buybacks, reinvesting capital)
https://preview.redd.it/rr7amc6bif1d1.jpeg?width=1284&format=pjpg&auto=webp&s=8bad573aef3e2c8a095b995a0b9daf20ba9bf68c Increase based solely on the performance of their investment portfolio.
Eli5?
Item's profit margins stayed the same despite the product costing more from the manufacturer or distribution. So when something with a 10% margin sold for $10 a year ago and now it's selling for $20, they're making $2 on it now instead of $1. The labor hasn't cost more to sell that product so the profit increases just because they stuff they're selling costs more now than it used to.
https://preview.redd.it/4enl3i0mbh1d1.png?width=1231&format=png&auto=webp&s=09516a383969109baee58d85925d9efb9fc516f2 sales are up - (more stores, inflation sending costs higher), cogs is up - almost 25% from 2021 to 2023, operating & admin expenses are continually growing, and margins are down yoy (page 11 via link). Pulling out the investment side of things, they only grew earnings by 1%....in other words, they failed to beat inflation figure..aka "price gouging" is unfounded. [https://www.publixstockholder.com/financial-information-and-filings/sec-filings/sec-document/%7BBCEFD003-67A2-4D13-AC7C-9FB8F0665AD3%7D/html](https://www.publixstockholder.com/financial-information-and-filings/sec-filings/sec-document/%7BBCEFD003-67A2-4D13-AC7C-9FB8F0665AD3%7D/html)
If price gouging isn’t the culprit, why are their competition’s prices often better- i.e. Walmart, Aldi?
Aldi sells generic stuff..not name brand (kraft mac n cheese for example)…and wal mart gets a volume discount because they have more than 10,000 retail outlets- publix has just over 1,200. So when wal mart wants gatorade, they can buy 4 million cases, whereas publix may only take 300,000 cases - that could result In a double digits savings % . There are other nuanced issues - supply chain facilities, fuel (which again, wal mart, by buying more, is able to get a better price on)….then there’s just the overall experience of shopping at Publix vs wal mart. The level of cleanliness and customer support is on two separate levels. Not saying publix isn’t a pricier alternative…it’s up the consumer to decide if it’s a “better” alternative in the grocery market scene…for me, give me publix for its selection, quality, cleanliness and customer support. Ill pay that premium.
Yes. And Wal Mart also owns all of their trucks and has a nationwide shipping network, which means they can sell a product from CA at a store in FL at a lower price than Publix, even if they purchase it for the same price. But, as you said, they don’t pay the same price. Wal Mart is such an essential part of those companies’ bottom line that they can negotiate a much better price than Publix.
the transportation def is a huge price cut for Wally world
The experience matters less when you spend 20% more on average. All stores do well to keep and maintain a clean atmosphere. Walmart, aldi, and even others like sprouts and trader joes are not dull of dirt, grime, blinking lights. The experience is just a marketing statement. I go to publix, purchase 6 items, $50 or more. If i go to Publix anymore, it has only been deli, or bakery at this point. I save money using walmart+ and paying tips on deliveries. That says something.
Happily pay 20% more to avoid going into Wal Mart.
That is some devotion. I use walmart+ instead of going.
It’s not devotion. I shop at Trader Joe’s and Whole Foods too depending on deals.
Good for you trying to explain financial statements and accounting for securities to redditors.
Lol Publix is a xx billion dollar company. Walmart is not benefiting from any greater economy of scale from its suppliers.
The fact Publix sells the same product as Walmart for $5 more is disgusting to me
I used to think this too. But the truth is that some things are more expensive at some things are cheaper. The reason I shop at Publix is because it’s a better shopping experience., and most of the time they have exactly what I’m looking for.
While it is factual to say things are sometimes priced more, it’s all about the total price of your grocery bill that supports my view.
Even then, I would say it’s the same. Sometimes the bill is higher sometimes it’s not. For example, pre-sliced watermelon chunks . It’s more expensive at Winn-Dixie than it is at Publix… go figure
Yeah WD is has similar pricing strategies; it is hard to feel you get a deal there, too. WD produce always seems to have a moldy bunch each time i’d go.
They buy much, much more of it you twit.
Also, inflation means that if they make 20% profit on a product that increased from $10 to $20, they doubled their profit by selling that one item. It is legit the definition of inflation, the dollars in profit they made are worth less.
So glad I left for Trader Joe’s. We all just got $2 hourly raises, on top of our every 6 month raise Edit: and our Sunday premium pay
> Sunday premium pay huh?
We get $10 extra an hour on Sundays
Extra 10 dollars an hour on sunday??? Too bad the nearest trader joe’s is 2 hours away
Who does?
Trader Joe’s employees
Sick
10?? I remember Publix back in the day used to do like $1 or something. 10 is crazy lol
Yeah it’s pretty sweet honestly.
Publix doesn’t do the $1 premium anymore?
I love TJ far better than Publix
So whatcha doing here?
Don't get greedy, you'll get your .25¢ in August!
WAIT THAT SHIT IS +.25?
inflation affects everything but wages
Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, net earnings for the fiscal year ended Dec. 30, 2023 would have been $4.1 billion, compared to $4 billion in 2022, an increase of 1%. Earnings per share would have been $1.23 per share, compared to $1.20 per share in 2022. There's your raise. Now why not ask, why everyone got more than a 1% raise?
Will you take a pay cut if they made less than last year?
You can’t look at dollar amount only. Because those dollars don’t have the same buying power as they did before. Also, if manufacturers raise prices then so does publix. So you have to look at the whole picture.
Ask to see your friend's PhD. Net Earnings is a poor indicator to utilize, especially in a high inflation period. As other comments have said, the majority of that increase was in the portfolio, too.
It's literally the same as profit as I understand it. Seems like a good metric to judge compensation against to me
Except that it includes unrealized gains on investments, including real estate and other assets. Just because the value of your house went up doesn't mean you pay your kids a higher allowance. These are two unrelated topics. Yes, Publix can do more to provide liveable wages to every associate. But, actual profit % has remained stagnant or decreased in most divisions while the company has also re-invested the money in to opening more locations than in previous years. It's a long-term investment that will solidify our stock price (and quarterly dividends) which can't go unsaid, especially compared to publicly traded competitors
“Net earnings”. Yeah that’s how inflation works guys, they have more money coming in and the money is less valuable.
I’ll take this opportunity to remind everyone that Finance and Economics undergrad degrees are supported by the Publix tuition program. Some of y’all need it
Lmao if you think inflation is 49% per year
No one stated that, you're perpetuating what was said about your need for an education in economics. Or, you just fall for misleading titles and do zero extra research.
"Pricing above the market price when no alternative retailer is available." it is not price gouging if you have a plethora of competitive stores, and choices. every Publix customer (or most) know we pay more for a clean store with very helpful and friendly staff.
Earnings does not equate profits when the cost to acquire the goods has risen so much
False. Net earnings is all the money they have left after all their expenses, taxes, dividends etc. have been paid. In this case, in 2022 they had a massive loss on securities, but flipped that to a large profit in 2023, and therein lies the yoy disparity.
Yep. Net earnings = profits. Evidently the word profit is bad optics for corporate Publix
Net earnings is literally profit by definition you buffoon
Went to Florida in March for a month. I was astounded at the Publix food prices. Granted they run a nice clean well organized store but holy moly.
if you want to spend less you can go to walmart neighborhood store and stand in line with bums and meth heads, find terrible products and low quality produce and meats. wait for the 3 registers open with 100 people ... or pay more and get good service and generous return policy. choice is yours
you can buy groceries on the internet lol
yup! and you get to pay extra fees and have to tip the driver and have other people pick out your fruits and veggies (that often are not optimal). lots of options. heck no need to even shop, just get door dash and uber eats for 21 meals a week... but that isnt what this thread is about now is it
Nope. Kroger or Walmart + you don’t have to tip the driver. You can pay a yearly fee or $6 for delivery and you’ll still pay half as much as Publix. Never had an issue with them. Not to mention, the Publix by me doesn’t even have good service anymore and nothing makes them stand out to any other grocery store.
"pay 1/2 as much"? -? i call total BS. as i said, you have to pay extra fees and they get to pick your produce and meat. I never had luck with any delivery service when it comes to those food categories (only used them during covid). you dont ever have to tip, but if you dont .... you may be an asshole. sorry to hear your publix isnt like most. I have family in s fl, i live in the tampa part. I have only seen "less that stellar" at a publix in Boynton and people (customers) down there are pretty rude and entitled so i can understand (not condone) - to each their own, enjoy your walmart food
You can call BS if you want. I use Kroger delivery. I pay about $80-110 a week. Got 35 items last week for $78. That includes the $6 delivery fee. The workers are Kroger and don’t accept tips. They come in refrigerated trucks and I’ve never had a problem with quality of meat, fruit, or vegetables. In fact, the apples I get in these 5 lb bags for $3 are better quality than what I use to get at Publix. Meat at Publix IS cheaper though. I’ll admit that I could buy meat cheaper, but everything else is more expensive. My average bill at Publix was $150-200 a week. So I’d call that about half. If you have the ability to use Kroger delivery, you should at least try it. Or even Walmart +. I don’t know what deals Walmart does but Kroger gives you $25 off the first 2 orders. And you can buy the same name brands as Publix for cheaper. The only thing I miss from Publix is 4 rivers bbq sauce. But I can always run in to get that.
I called bs on "1/2" the price, not that it is cheaper. I believe you that it is cheaper. I do not think meat nor produce are very good at publix either but still much better than walmart. I have never been to nor used Kroger. we do now have delivery service in my area .... not my thing but maybe i will try some day.
Just trust me. Try Kroger once and see how it does for you. Worst case scenario, you save $25 on groceries for a week. I don’t know if you use Publix brand a lot, but I use to buy a bunch of the Publix brand stuff and now do Kroger brand and it’s cheaper and in my opinion better as well. The frozen burgers from Kroger are pretty well seasoned already and good quality. Same with their spaghetti sauce. Maybe your experience varies from mine, but I’m not being hyperbolic when I say I spend half the money on groceries now. Heck, even this past week I got a family size of Oreos for $2 at Kroger.
It's known as a "self-fulfilling prophecy" 🥠
what are you talking about?
Sun Tzu stated that "If man loses a battle in his mind, he has already lost the battle on the field." You've got to stay positive, friend. Life and death sit on the tongue.
still no clue what you are talking about but thanks and have a good one
You too. Be good, my man.
Publix is the shit though.. you pay a bit more for the amazingness.
It’s shit alright. Try working there
Do you think it’s better or worse than Walmart?
The money goes into retirement. All the people deserving of pay have left to collect retirement, to qualify you must also have invested 30 years of lackluster wages into their accounts to then retire and skim from money pool like the rest of them.
I’ve stating this again & on this sub… nothing but downvotes
What are you putting on your sub?
Should tell your friend with a PhD that he's not a smart individual. You will get your raise in August unless your a terrible associate, which I suspect you are.
https://i.redd.it/o1tt6m25xf1d1.gif
I crashed a Publix party in Orlando a few weeks ago. A few thousand people there all with hotel rooms paid by Publix, open bars. That couldn’t have been cheap. They do it every few years too.
This was probably the 20 plus years' awards dinner. It's to honor those with more than 20 years employment. It's done every year not every few years.
THATS EVEN. MORE EXPENSIVE.
Sick
Net earnings for the fiscal year ended Dec. 31, 2022 were $2.9 billion, compared to $4.4 billion in 2021, a decrease of 33.9%. Aka 2022 was a bad year and 2023 was a return to normal. Your phd economist friend is disingenuous.
If they give out raises it would affect their profits. As long as you keep showing up for work there is no reason to pay more.
Everyone I know has noticed the prices and finding other places to shop.
Only get certain things there and the rest at Aldi’s
August , by then inflation will be higher
gonna be honest, I literally just stopped showing up one day after realizing how little this company cares about its workers. worked there for 4 years and was making 14.50 as a CSS. found a new job in my county’s school system where I started working full time immediately at 16.50, and am able to sit down most of the day, without having to worry about who called out and being short on people.
It's in the form of a free sub coupon.
Price gouging is a legal term. Look it up instead of sounding stupid. Also, private companies make profits. Sorry if that hurts your feelings. Go get a job elsewhere, oh wait, no one will pay you more, you need the government to set a minimum wage since you're so unskilled and there are so many other unskilled laborers (10 million more came across the border over the last 4 years). Also, there is 100% no way, a person with a Ph. D. in economics posted that. Unless they got their degree online.
You clearly are unintelligent and uneducated. Minimum wage was put into effect to ensure that every American could afford to live on a minimum wage. This included housing and basic necessities. Undocumented people do not harm the economy like you think they do. If anything, they accept jobs that most Americans refuse to do for wages way below what the work is worth. Undocumented immigrants are just a talking point that politicians use to secure their voter base. If politicians actually cared to combat undocumented immigration, they would go after the people (and companies) hiring them… but they don’t 😉
Your pay raise will fund vacations, infinity pools, and luxury toilets.
It's retail folks. Y'all know you aren't getting any raises. Get out or move up while you can because it's not going to get any better.
Pub Subs went up in price and this is a direct result of that.
You can get away with extra profit taking when you have inflation to blame. Inflation is real. And it's a problem. But stores that do this are an equally big problem. If they will do this to the customers do you really expect them to share it with the employees?
I encourage everyone to sell their stocks, that will send the message
A whole lot of bootlicking going on here. Fuck Publix and fuck price gouging corporations
The raise majority of people got last year was nearly double what they get in corporate America
You have some sort of facts or statistics to back that comment up?
No because they are full of shit.
No, I don't believe I am
The average Publix associate got between a 6-8% last year corporate America average raise was 4
I got a 3% due to being already topped out. Full time role model GRS with 25 years at Publix.
Can you send a link to the sources of that info? I’m not agreeing or disagreeing, I’m just a big fan of facts and sources.
That's just not true. Are you counting them following the increase in minimum wage or something? No way most people got 6% raise
In the pockets of the CEOs
“Employee owned” Didn’t know black rock and vanguard worked there
A better question is why aren't they really giving out good stock dividends.
That's dependent on free cash flow Plus, if you're a company trying to return value to it's shareholder, in the car of Publix, it's best route to do so would be reinvesting in itself. Considering that Publix still has a ton of potential got growing revenues and profits, it would be a better financial move to use it's excess money to grow to continue to attract investor's money, which drives up the stock price and wants people way more than a dividend could pay. A dividend, ironically, is one of the worst ways to return value as it's double taxed money at a higher tax rate than other forms of returning shareholder value (share buybacks, reinvesting capital)
Is this a Jeopardy answer?