Comment by zozbot234
6 hours ago
Issuing a dividend is a terrible sign for the market. It's telling investors "we have so much money that we have no idea what to do with, please take some of it yourself and invest it somewhere other than Intel."
6 hours ago
Issuing a dividend is a terrible sign for the market. It's telling investors "we have so much money that we have no idea what to do with, please take some of it yourself and invest it somewhere other than Intel."
Have always felt stock buy-backs are equally terrible.
“We have all this money but we have no long term vision for how to grow the company. We’ll just keep doing what we’ve been doing prop up our share price instead”.
It is a tax efficient way to return profits to share holders
For a blue chip that's reliably issued one for years, it's also a major part of the reason to own the stock. Throwing that away will not have a good impact on the value even if it's justified.
But value is meaningless. The ultimate purpose for a producer in a market is to provide infinite value for no cost.
Of course that is a pipe dream, so it should provide the highest value for the lowest cost.
For those who want to argue it should be a balance: consider the opposite position. A producer should provide no value at infinite cost. In this case, everything withers. If party A and party B need each other's products to survive, they can do that when the value is infinite and the cost is zero, but not when the value is zero and the cost is infinite.
The last few decades have shown that giving the finger to the customer and going all in on shareholdermaxxing has nothing but terrible effects and is like sticking a spanner into the wheel of capitalism.