TIISETSO MOTSOENENG: Dividends need to be sacrificed for good of the company
Capitec heeds SA Reserve Bank call to cut 2020 payments to shareholders
As businesses hunker down for a prolonged economic standstill, boards of directors in some SA companies have considered it prudent to close dividend taps and build cash buffers to withstand the Covid-19-induced downturn.
It’s annoying to shareholders. But it would be difficult to make a case for payments if it means your company will not be able to come out on the other side of the pandemic that has triggered a fight for survival even among global industry stalwarts...