RVDondaPC on 09 April 2010
| Grimes said: Some successful companies give dividends, others do not. Some bad companies give dividends, others do not. I don't really see how that is relevant to this argument. |
Because everytime a company pays out a dividend it is paying out a piece of value from the company which decreases the Market Cap of that company. If they did not pay out a dividend then the market cap of that company would be much higher than it is.
