In finance theory, you learn about dividends and the “bird in hand” concept, which suggests that investors prefer dividends to larger capital gains because they are banking a return at an earlier stage and with more certainty.
But here’s the thing: if the company has great investment opportunities available, you technically shouldn’t want dividends. The company should retain all earnings and invest them at a rate that exceeds the cost of equity . In doing so, the company is seen as a “compounder” that generates strong returns over many years...
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
THE FINANCE GHOST: MultiChoice vs the streamersThere’s no guarantee that the likes of Netflix and Disney+ will become economically attractive. Is this a winner-takes-all industry, or does everyone (but the consumer) simply suffer? By FinanceGhost FinanceGhost The days of free to air TV trumped the era of these cut-throat streaming pirates with their questionable fare
Source: FinancialMail - 🏆 20. / 63 Read more »
Jack Ma’s Ant eyes life as a financial holding companyFintech juggernaut will be much diminished, with policymakers dramatically curbing its growth in consumer finance
Source: BDliveSA - 🏆 12. / 63 Read more »