Lease this WebApp and get rid of the ads.
Wow. Dividends can be raised at any time...
Thu Nov 30, 2017 12:55pm

Both stock price AND dividends are a reflection of the PERCEIVED FUTURE EARNINGS OF THE CORPORATION. When capital comes in to the company in the form of higher stock prices, the corporation does indeed improve its cash flow with internal transfers of Treasury Stock and other buy backs. And yes, some of them then use that to increase their dividend payouts, simply because they know that makes their stock more attractive to more buyers. Yes, the P/E Ratio of the stock goes down a bit, but the "value" of their stock goes up for many potential investors.

  • Dividends cannot be raise to reflect ~ DFM, Thu Nov 30 12:46pm
    higher stock prices. Dividends come from PROFIT, not stock prices, which can vary whimsically. It takes CASH to increase dividends, while it takes only rumors and investor herd instinct to raise... more
    • Wow. Dividends can be raised at any time... ~ TheFrustratedPragmatist, Thu Nov 30 12:55pm
Click here to receive daily updates