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Old 05-07-2020, 09:12 PM
dalej42 is offline
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Join Date: Feb 2004
Location: Chicago
Posts: 16,448

How does the stock market work?

Interesting during these times when companies are being harshly criticized for paying dividends. Thereís only 3 things a company can do with idle cash: save it, reinvest it into the company (including buybacks), or pay it out as dividends. Shareholders are the owners of the company and thus they arenít likely to be satisfied with keeping large sums of cash around doing nothing in the low interest rate environment which has persisted since December 2008.

Also, many critics need to realize that they may have benefited from dividends as they may indirectly hold the stock in their retirement plans through mutual funds or ETFs.
Twitter:@Stardales IG:@Dalej42 He/Him/His


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