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Stephen Cranston’s most recent column refers (“Dividends are bouncing back almost everywhere”, November 18).
There are pros and cons to dividend payouts. The obvious con is that the corporation cannot deploy excess capital over and above its hurdle rate.
With growth-driven stocks, investors look for consistent dividend growth. If one year is skipped, this could mean trouble for the corporation from a shareholder value point of view.
Hanief Haider
Via BusinessLIVE
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