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Grimes on 09 April 2010
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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.

There are plenty of successful companies that pay out dividends. If there was such a strong correlation, the market would adjust to it.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.