iamwhatiseem
Diamond Member
Dividends are making a comeback because without growth there is no other way to price stocks than dividend yield except liquidation value.
How much of a comeback? Because the trend away from dividends is one of the truly significant factors that has fucked up Wall Street.
When all the incentives and bonuses are shifted toward performance of the stock trading value we see rampant criminal enterprise focused on driving up stock values. Whereas if profitability is the main thrust we see execs trying to build successful engines of growth. Which has in the past been very good for the nation.
Damn straight.
I couldn't hit the Thanks button fast enough reading this.
This is exactly what is driving WS now...not actual physical performance, but just what the stock value can be driven to.
We have all seen it. Company stocks go through the roof because of a merger or sale of assets - while their actual production output actually REDUCED. They are selling less products, and making less money doing so - but the company nevertheless is reeping $$$ because enough spectators and anaylst drive up the stocks.
Talk about a house built on sand.