No. of Recommendations: 13
"Also I have yet to read a post here where someone wrote that dividends are "free money." No idea why "experts" keep mentioning that. Also wonder why the "experts" aren't contacting CEO's, attending shareholders meetings, etc. and speaking up about how misguided it is to pay a dividend. The only place one reads that is on this board...UCMTSU."
It looks like some people can only see black or white. No grey.
It isn't necessarily nor always misguided for a company to pay a dividend (I have yet to see anyone here actually argue that). However when the whole point of what the company does is rationally allocating capital, then dividends are much harder to justify. Most people here have no problem with OXY, XON, or KO sending a dividend to shareholders. Those companies are in the oil or sugary water business, not the rationally allocating capital business.
