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RVDondaPC said:
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.

this is far from the truth..market value is indepedend of any dividend paid out to s/hers.. dividend is paid from net profits a company makes (subject to solvency tests). If they cant satisfy the solvency test then they cant pay dividends..so in a sense when they are paying dividends that means that they are in a excellent financial position, which should reflect in a better market value, and not the opposite.