That's a completely different topic. I'm tired of hearing people spout about a legal obligation to grow.
If you mean "it will hurt somebody's feelings" don't say "it's illegal". Those words do not mean the same thing.
If a company earned a $1 dividend for the last five years and the stock price is $10, what is wrong with paying out $1 dividend again next year and having the stock price stay at $10?
If a stockholder wants a bigger payout they can sell their share and invest the $10 in some other stock and take their chances.
Personally, I think a $10 share that pays out $1 and is still worth $10 is incredible. It doesn't bother me at all that neither the price nor the dividend has grown. It doesn't bother me that the square meters of manufacturing floor space hasn't grown. I don't mind that the number of employees hasn't grown. It's ok that the number of SKUs has stayed the same.
constantcrying|2 years ago
supportlocal4h|2 years ago
If you mean "it will hurt somebody's feelings" don't say "it's illegal". Those words do not mean the same thing.
If a company earned a $1 dividend for the last five years and the stock price is $10, what is wrong with paying out $1 dividend again next year and having the stock price stay at $10?
If a stockholder wants a bigger payout they can sell their share and invest the $10 in some other stock and take their chances.
Personally, I think a $10 share that pays out $1 and is still worth $10 is incredible. It doesn't bother me at all that neither the price nor the dividend has grown. It doesn't bother me that the square meters of manufacturing floor space hasn't grown. I don't mind that the number of employees hasn't grown. It's ok that the number of SKUs has stayed the same.