http://www.cuckee.com/the-basis-of-dividend-payouts/ Forex, Finance, Investments and Insurance - Risk Unplugged Tue, 06 Jan 2009 20:25:59 +0000 http://wordpress.org/?v=2.2.1 http://www.cuckee.com/the-basis-of-dividend-payouts/#comment-2876 Jon Fri, 29 Feb 2008 06:48:20 +0000 http://www.cuckee.com/the-basis-of-dividend-payouts/#comment-2876 Part of the reputation of many blue chip companies is that investors know they will reliably pay out a certain % of dividends every year. Stock prices would probably drop for these companies if they decided to reinvest earnings as opposed to paying it out in dividends, even if it was for a good reason, and that's no good for the directors holding millions in stock! Part of the reputation of many blue chip companies is that investors know they will reliably pay out a certain % of dividends every year. Stock prices would probably drop for these companies if they decided to reinvest earnings as opposed to paying it out in dividends, even if it was for a good reason, and that’s no good for the directors holding millions in stock!

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