Dividends4Life: More Companies Be Raising Dividends

Dividend Growth Stocks News

More Companies Be Raising Dividends

Posted by D4L | Wednesday, January 16, 2013 | | 0 comments »

The S&P 500 (SNPINDEX: ^GSPC) dividend payout ratio -- the percentage of earnings paid out to shareholders as dividends -- is at an all-time low. Frankly, this is a tragedy. Instead of writing checks to shareholders, companies are instead spending incredible amounts on share buybacks and acquisitions, both of which have a dismal history of providing shareholder value.

Share buybacks tend to ramp up when shares are most expensive, subsidizing existing shareholders at the expense of loyal shareholders. And acquisitions are often done at irrationally high prices, allowing management to "empire build" but rarely creating lasting value.

Source: Motley Fool

Related Articles:
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
- Why Dividends Matter



Post a Comment

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