Peter Zeihan: Why Do the Democrats Keep Losing Ground?
The future of the Democratic Party in the US isn’t looking too bright. When strategy and targeting don’t change for over half a century, I…
Thought Leader: Peter Zeihan
Save cash and reward shareholders: The case for stock dividends
By Sheila Bair (original source Yahoo Finance)
“Dividends. To cut, or not to cut. That is the question confronting companies throughout the globe as they struggle to conserve enough cash to keep themselves going during a deepening economic downturn.
Many household names– Marriott, Ford, Boeing–have already eliminated dividends. Total cuts this year are estimated to be as high as $493 billion worldwide, representing a one-third drop from last year’s payouts. This is in stock owners’ long-term interests as dividend cuts will preserve scarce cash necessary to keep their companies afloat and operational. Importantly, most families will feel none of the pain as about half have any exposure to the stock market, and wealthy investors can presumably weather several quarters of skipped dividends.
Yet there are retirees and other middle class families who do depend on those dividend checks to cover living expenses. For them, dividend cuts can create hardship, so it is worth asking whether there is an alternative.
Paying dividends in shares, instead of cash, is one way to address the needs of this group.”
Click here to read more
Relevant and recent posts
Peter Goodman: His Start-Up May Not Survive Trump’s Tariffs
A sourdough baker turned entrepreneur in North Carolina has delayed his new product as he contemplates the prospect that higher costs will doom his company.…
Thought Leader: Peter Goodman
Patrick McGee: Is Tim Cook the Right or Risky Choice for Apple?
Deepwater’s Gene Munster and author of ‘Apple in China’ Patrick McGee, join ‘The Exchange’ to discuss whether Apple needs a new CEO and what needs…
Thought Leader: Patrick McGee
