Re:Companies Use Borrowed Billions to Buy Back Stock, Not to...
by michaelt on Saturday August 10, 2019 @07:13PM
(#20665105)
If you're a mature company making something like ketchup or tyres or whatever, there's limited scope for growth. There'll be good years and bad years, but nobody claims ketchup revenue will treble in the next 15 years, in the way Netflix revenue might do.
For a company whose sales have reached cruising altitude, a dividend is the equivalent of the interest you'd be paid, had you put the same money into a bank account.
For a company whose sales have reached cruising altitude, a dividend is the equivalent of the interest you'd be paid, had you put the same money into a bank account.