Are Dividends A Religious Experience? The Reality Of Why CEOs Increase Dividends
May 21, 2015
With bond yields hovering at or even below zero, dividend stocks have been increasingly more desirable for long-term investors. Textbooks tell us that companies pay dividends when they can’t reinvest their cash flow back into their business at an acceptable rate of return. But textbooks aside, are there other reasons that company executives initiate or increase a dividend? The answer may surprise you.
Reality Shares Associate Portfolio Manager Ken Han takes a tongue-in-cheek look at alternative theories on what drives CEO dividend policy. Read it on SeekingAlpha.com.
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