[supportlocal4h]

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]

All stocks fluctuate. If the stock price never growths, it is permanently falling.

>If you mean "it will hurt somebody's feelings" don't say "it's illegal". Those words do not mean the same thing.

To some extent they are the same thing. Dissatisfied shareholders are the ones who bring lawsuits.

>what is wrong with paying out $1 dividend again next year and having the stock price stay at $10?

Nothing. Unless they have significant debt.

>Personally, I think a $10 share that pays out $1 and is still worth $10 is incredible.

Which is why its stock price will rise. 10% return on investment is obviously quite good (therfore the stock price rises).