You are right about the difference between dividends and yeild, but retained earnings can be reinvested. Digital Equipment Corporation “reinvested” all profits for about thirty years (and they were *very* profitable). The problem was, by the time they decided to start paying dividends, they were no longer profitable and are no longer around, although there are some greying HP employees in Maynard who will help you mantain your VAX.
Once upon a time, I taught myself how to set up and manage a small VAX network. After about 2 years of that, I got a chance to go to a VAX Management class in Denver.
That was one the BEST classes I ever took. Every day, I was saying... "OH, THAT's WHY I have to do that!"
"Oh no.. That's NOT how that works! "