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> When a company has cash that it can't invest as profitably as its shareholders could do on their own, it's obligated to pay it to them as a dividend. Aside f
by rtepopbe 4y ago
> When a company has cash that it can't invest as profitably as its shareholders could do on their own, it's obligated to pay it to them as a dividend.
Aside from, as far as I know, not being any kind of legal obligation... I don't see how that situation would ever even come into effect if it was.
What kind of investment opportunity is going to turn down cash from a company (especially one the size of Facebook/Meta) but welcome it from most/all of their investors?
- Cupertino95014 4y agoI don't understand the last paragraph. Can you explain? Several people corrected the word "obligation" to "expectation." That's the right word. If you get a big dividend check from Meta for your shares (and by "big" I mean "Bobby Axelrod big") you invest it in your leading opportunity.