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In some ways this is a negative. Issuing dividends means a company thinks that an investor can get a higher return on the cash elsewhere. I.e. there is a lack o

by iyulaev 14y ago

In some ways this is a negative. Issuing dividends means a company thinks that an investor can get a higher return on the cash elsewhere. I.e. there is a lack of profitable opportunities for the company to invest their cash pile.

loumf 14y ago
True, but with such a giant pile, it is only saying that they can't invest the part they return (which is a small percentage of their total).
icelancer 14y ago
It also indicate fiscal conservatism in a not-yet-recovered economy, which can be a solid positive.
- iyulaev 14y ago
  If I was a start-up, and you gave me $10M seed money, and I gave it back to you a year later saying I don't have any ideas, would you call me fiscally conservative, or a waste of time?
  - icelancer 14y ago
    Economies of scale make that analogy not relevant.