The question isn't really whether you get dividends. It is whether profits in a company ever come back to investors.

Stock buybacks are merely another way to do that, and one which has better tax consequences.

As for stocks, there are arguments every way for how they should be now. Long-term they are extremely likely to be a solid investment. Make your own decisions, and as long as you are not ridiculous about it, it will probably work out OK in the end.

Cheers,
Ben

It allows value to accumulate without taking tax consequences. Unless it is ruled illegal, in which case everyone except Uncle Sam loses. So it has been good for major Microsoft investors (particularly Bill Gates), but is legally risky.

But it is fair to point out that Microsoft is in a form of business where they need to make large and risky long-term investments. This limits them to lines of business with very high returns, and gives them a legitimate reason to have large reserves. (If not as absurdly large as the ones that they currently have...)

Cheers,
Ben