The value of a share of stock depends on the dividend because the stock price today is equal to the present value of all future dividends

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Please provide a response to the below statements 80+ words:

Think about whether or not the  arguments articulate and logical?  Are their facts correct?

1)Jenn – The value of a share of stock depends on the dividend because the
stock price today is equal to the present value of all future
dividends.  The payment of dividends is a way companies can encourage
stockholders to invest additional funds.  Investors are willing to buy
shares even if the company does not pay dividends because according to
our text what that really means is that they are not “currently” paying
dividends.  At some point the shareholder will get some payout because a
company that is always at zero would be considered a financial “black
hole” and the investment wouldn’t have any value.  “When a company that
traditionally pays dividends issues a lower-than-normal dividend, or no
dividend at all, it may be interpreted as a sign that the company has
fallen on hard times (Boyte-White, 2015).”

2)Ivory:

The value of
a share of stock depend on dividends, which can relate to the preferred stock.
The preferred stock is “stock with dividend priority over common stock,
normally with a fixed dividend rate, sometimes without having voting rights” (Ross, Westerfield, & Jordan, 2016, p. 254). The
dividends can be cumulative or noncumulative and if the stock is high or low
and the board of directors can decide to whether to pay the dividends on shares
or not. Just because no dividends are paid it does not mean the company is not
in good shape.

A
substantial percentage of the companies listed on the NYSE and NASDAQ don’t pay
dividends, but investors are nonetheless willing to buy shares in them.  This
is possible considering that the company is simply investing in their company
to expand. Most of the companies that are listed within these markets are high
in value and if the company decides to sell and/or issue dividends the
shareholders will have voting rights. “Holders of preferred shares are often
granted voting and other rights if preferred dividends have not been paid for
some time” (Ross, Westerfield, &
Jordan, 2016, p. 254). Most preferred stock are not risky and shareholders are
likely to continue to invest because of the low risk.

Thanks!!