All it [a dividend]does is reduce dilution for shareholders of companies that issue a lot of shares for compensation or acquisitions.

How's that, again?

Stock repurchases reduce dilution of existing shareholders. There are 100 shares outstanding; the firm issues ten shares to C-suite types; the company then repurchases ten shares on the open market. Net dilution zero; effect on company value, dependent on the price the company paid at the moment they repurchased.

Now the company issues ten shares for the suits, and has 110 shares outstanding. It declares a dividend. So, I guess if the dividend is engineered to be paid before the issuance, then you could argue that the dilution is less profound than it would have been. For the moment.

Is that what you mean? Because I don't see a lot of intermittent dividends being issued just before shares are awarded.

Or am I missing the point?

--sutton
(who misses the point regularly. Kids and spouses help with this knowledge.)