Re:Microsoft announces quarterly dividend increase and share...
by fleitz on Tuesday September 17, 2013 @09:13PM
(#6402867)
The idea behind keeping capital in the company is that the company is able to generate better returns than the shareholders could.
There's no reason why this has to be market changing, etc. Building a new factory that produces the same goods with more capital and less labour could be a use that would generate greater returns.
There are many reasons to hold capital and many reasons to dividend it.
There's no reason why this has to be market changing, etc. Building a new factory that produces the same goods with more capital and less labour could be a use that would generate greater returns.
There are many reasons to hold capital and many reasons to dividend it.