RSS Feed Share on Facebook Send this to Twitter | Login Login | Register
City Independent
The Hull City Fanzine
 
Hull City Forum

Hull City Forum

Deails Post
3 posts. All posts shown

New Back To Top

candw

User Image

26485 posts
First used 09/01/17

#1
22/06/2019 at 19:24

Borrow to invest? Eat your heart out.

https://www.theguardian.com/business/2019 /jun/22/investors-demand-dividends-push-u s-to-disaster-corporate-borrowing

New Back To Top

essexgull

8969 posts
First used 12/01/17

#2
22/06/2019 at 20:03

The issue is that 'investors' in company debt/bonds are largely pension funds. If you/most other pensioners weren't paid out your monthly pension because the companies, that the fund(s) were invested in, weren't paying dividends, you'd be unhappy... so pension funds invest in companies that guarantee dividends, which are usually utility companies who have a relatively fixed profit return.

How do you solve the issue? on one hand you have several million demanding a regular pay-out, but it's ham-stringing the companies from paying higher wages, investing in growth and productivity and other things...? If you have an answer, tens of thousands of business economists would want to hear it.


ESSEX GUL 

New Back To Top

candw

User Image

26485 posts
First used 09/01/17

#3
23/06/2019 at 09:00

Aren't they supposed to pay dividends after profit is made and after moneys are made available to invest in modernisation, with the aim of increasing those profits? Aren't we facing a situation similar to 2007?

The American way

3 posts. All posts shown