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Shareholders are the primary consideration in every company, above the C-Suite and employees. Not surprised Intel keeps paying dividends (significantly reduced
by boeingUH60 3y ago
Shareholders are the primary consideration in every company, above the C-Suite and employees. Not surprised Intel keeps paying dividends (significantly reduced even). If they don't, good luck raising money from the capital markets to fund those insanely expensive chip fabrication plants.
- zht 3y agowhat about companies that don't issue dividends or stock buybacks? does that mean that their stock is worthless?
- boeingUH60 3y agoTraditionally, the aim of buying shares in a public company was collecting dividends every quarter. There are exceptions when shareholders expect a company to lose money in the short term but make enough in the long term to return money back to them via dividends (or buybacks). But tech companies came and changed everything by selling BS visions and pumping their stock high…who needs dividends when I can lose money and still increase my stock price by selling the latest fad to investors, e.g., Uber. Personally, I think we should revert to the previous system.
- zht 3y agoIf you took a basic finance course you’d see that they are equivalent…
- FairlyInvolved 3y agoOutside of a few retail investors institutional buyers are no so naïve that they take a loss-making company paying out a dividend as a measure of good financial health. Long Intel but as Dylan (and many others) noted they should have stopped the dividend a year ago.