02-15-2014, 09:00 AM
Here's an interesting article about the record amount of cash that companies are sitting on.
The argument is rather than fueling investment, it is being returned to shareholders in the form of buybacks and dividends (yay!). It also has this interesting bit:
If that trend continues, an S&P 500 index fund would become a dividend fund, of sorts.
The argument is rather than fueling investment, it is being returned to shareholders in the form of buybacks and dividends (yay!). It also has this interesting bit:
Quote:Dividends are also booming. At the end of January, some 420 out of the 500 companies that comprise the benchmark S&P 500 stock index paid dividends. That’s the most since 1998. And S&P companies say they plan to pay out roughly $330 billion in dividends this year—a new record high.
If that trend continues, an S&P 500 index fund would become a dividend fund, of sorts.