I get that from a pure game play perspective, there are some investments that are problematic. Some stocks have such low dividends that an investment back is painful. Specifically that dividend number is .31 (e) today. We get to that number by finding the top 5,000 dividend paying stocks on EA. Since EA only will pay dividends on your top 5,000 investments, you need to eventually max in those accounts to maximize your daily income. That is a question of raw dividends regardless of the price of a stock.
Even understanding that, I think there are some good reasons to invest in the folks who invest in you.
1. The most important reason to buy back is because it is the best way to increase your share price. More people will invest in you if they know that you invest back. I buy you; you buy me; we both increase our share price. It is little happy dance that benefits us all.
2. The second reason to buy back is a bit defensive. If you don’t own any of my shares, you have very little leverage to keep me from selling you. Everyone finds a rough patch in the game. Divs drop a bit or your share price slows or perhaps an unguarded comment somewhere. Almost any reason including simply being mad at you for not investing back might provoke a sale. Personally I refer to the profiles that don’t invest back as my savings account. On the other hand, a substantial investment in me will almost always keep me from selling; since I know that you could sell me also.
3. I think it is good manners. When someone does something kind, I think it is good form to do something kind in return. We all smile when someone invests in us. Why not return the favor?
4. Social media at its core is a reciprocal adventure. I am not simply talking about a quid pro quo sort of you do this and I do that. I am talking about engaged relationships. I invest in you because I know that it helps you. You do the same because you know that my rising share price increases your net wealth.
5. There are often relationship benefits that you find from investing even in players who have a less than stellar ROI. Everyone on the Avenue knows what dividend they pay. Everyone on the Avenue knows her share price. Many folks who struggle with improving their dividends run shareholder only bonus missions. Others reach out with retweets or like bombs.
6. Finally you can’t grow your dividend payment forever, but all of us probably hope to keep growing our share price. That is sort of a sneaky way to tell you that eventually some new player is likely to look at you and wonder….Why would I invest in that?