Quote:
Originally Posted by Ignitionnet
Dividends aren't 'gifts'. They increase share price and encourage further investment in companies. Do you think that pension funds and other long term investments are constantly trading every share in order to make payouts? No, a goodly part of their income is from the steady flow of dividend payments. In addition these dividends both incentivise further investment by offering a regular return and incentivise holding onto the shares for longer term reducing volatility.
On the one hand you complain about companies being money obsessed on the other you think they hand out 'gifts' presumably out of the goodness of their black corporate hearts. Interesting.
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fair point on the dividends I guess although it seemed bizarre to me to pay them out at the back of a poor year. Probably to give an illusion to shareholders things werent that bad.