3 ms·
That's why I always struggled with the concepts of dividends. If you have so much money you can pay dividends, it means you have grossly high margins and not i
by guard-of-terra 14y ago
That's why I always struggled with the concepts of dividends.
If you have so much money you can pay dividends, it means you have grossly high margins and not investing in growth enough; which means someone will come and not only destroy your margins but your business also.
If we're talking tech not mining.
- msrpotus 14y agoSome companies are cash cows and don't have to worry much about huge new innovations. Think of Coca Cola. Sure, they have to compete with Pepsi and are probably investing in new equipment but at the end of the day, they aren't entirely reinventing themselves the way most tech companies have to.
- gfodor 14y agoThe primary duty of the company's executives is to deploy capital effectively. Paying out dividends in many cases is a sign of good management since it makes it clear they understand the limitations of what they can do with deploying capital internally. The assumption is that unless they can earn more on the capital than shareholders could by investing it elsewhere, they should return it to shareholders.
- cageface 14y agoThey should invest at least some of it in making Xcode less terrible.