Why give dividends?

[crgarcia]

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.

 

[street carp]

Quote from Sparohok:
If a corporation never returns cash to its shareholders, through dividends, share repurchases, or being acquired in a cash deal, then its stock is worthless -- no matter how much "profit" or "capital gains" are temporarily assigned to it by hopeful market participants.

Martin [/B]

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.

 

[street carp]

Quote from crgarcia:

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

I agree.

 

[piezoe]

I trade companies that don't pay dividends , i invest in companies that do.