They hang on in industries, like autos, putting pressure on managements to keep paying out, when the prudent thing for companies to do is to build reserves or re-invest in ways that strengthen the firm in anticipation of adverse times.
Sure, dividends are a "signal", but they are not a shareholder "right".
If you must have a dividend, go buy a utility, for pity's sake.
(Sorry, but I just read someone whining aloud and unashamedly about their Bank of America dividend).
Wednesday, October 15, 2008
Why I Hate "Dividend Investors"
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