Why give dividends?

Discussion in 'Trading' started by switze22, Feb 4, 2008.

  1. Because companies can't find where to (profitably) invest their money.

    All other thing being equal if a company which never gave dividends, anounces a dividend, its stocks will plunge slightly; as it's a signal it is plateauing.

    Of course, companies may make foolish acquisitions like Facebook and Yahoo but since these are not profitable investments, they will be in financial trouble later.
     
    #11     Feb 5, 2008
  2. When BRK/a or BRK/b (which don't pay dividends) are priced "worthless" in the market someone let me know about it so I can buy.
     
    #12     Feb 5, 2008
  3. I agree.
     
    #13     Feb 5, 2008
  4. piezoe

    piezoe

    I trade companies that don't pay dividends , i invest in companies that do.
     
    #14     Feb 5, 2008