02-02-2014, 06:34 PM
You may be right.
The thing that has me befuddled is that both boards have increased dividends in the double digit percentages for a while. Even with this lousy earnings report, MAT increased their dividend 5% in the same announcement. You'd think if the boards were in "hunker down" mode, they wouldn't be so generous.
I skimmed MAT's earnings report and there are a lot of non-cash adjustments for old IP lawsuits. It really got me confused at first glance and want to look at that further.
Interestingly, in the same earnings report, they advised that all their dividends for 2013 were not considered "qualified" dividends but to be considered as return of capital. Another interesting tidbit I've never seen before. Couldn't find the reason why yet but now I need to satisfy my own curiosity.
The thing that has me befuddled is that both boards have increased dividends in the double digit percentages for a while. Even with this lousy earnings report, MAT increased their dividend 5% in the same announcement. You'd think if the boards were in "hunker down" mode, they wouldn't be so generous.
I skimmed MAT's earnings report and there are a lot of non-cash adjustments for old IP lawsuits. It really got me confused at first glance and want to look at that further.
Interestingly, in the same earnings report, they advised that all their dividends for 2013 were not considered "qualified" dividends but to be considered as return of capital. Another interesting tidbit I've never seen before. Couldn't find the reason why yet but now I need to satisfy my own curiosity.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan