Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
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
JOIN THE DISCUSSION: Send us an e-mail with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Dividends have a downside
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
JOIN THE DISCUSSION: Send us an e-mail with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Investec shareholders to get a Ninety One bonanza after profit rebounds
Grindrod Shipping declares first quarterly dividend on commodities boom
Stor-Age upgrades dividend forecast as lockdowns work in its favour
CHRIS GILMOUR: Compound annual growth rate explains high Clicks rating
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
LETTER: AngloGold Ashanti’s growth will be jobless
Life Healthcare reinstates dividends but steels itself for more Covid-19 issues
Grindrod Shipping declares first quarterly dividend on commodities boom
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.