Dividends4Life: More Companies Need to Be Like Apple

More Companies Need to Be Like Apple

Posted by D4L | Sunday, April 08, 2012 | | 0 comments »

Research firm Capital Economics wonders whether the sluggish economy could get a boost if more companies followed in Apple’s footsteps and started paying dividends. Plenty of attention has been paid to the billions of dollars piling up on company balance sheets these days.

Profits have been strong, yet deal activity is way down and companies aren’t embarking on hiring sprees. Corporations are generally behaving cautiously, sitting on their cash and waiting for confirmation that the economy’s recovery is for real before putting their cash to use. But if more companies started paying dividends, “the resulting boost to personal income and consumption could be significant,” writes Paul Ashworth, chief U.S. economist at Capital Economics. “Even if firms only paid out 10% of their liquid assets, that would be enough to boost annual disposable income by almost 2%.”

Source: Wall Street Journal

Related Articles:
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- 11 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 4 Secrets To Finding The Best Dividend Stocks
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 5 Dividend Stocks In Need Of A Market Correction

Click here to have future posts delivered to you for free!



Post a Comment

Note: Only a member of this blog may post a comment.


Popular Posts Last 30 Days