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Why don't companies pay dividends on a graduated scale?
#8
(12-26-2021, 11:07 AM)crimsonghost747 Wrote: The reason they don't do this is that it would be illegal. (at least on this side of the pond) And quite frankly, unjust.
Shares dictate ownership of a company. Two people with the same amount of ownership need to have the exact same rights, and get the same amount of shareholder distributions.

You can just turn on your dividend reinvestment plan and you kind of get the desired effect. Some companies do offer a discount on the DRIP, which is their way of promoting long-term ownership.

bingo!
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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


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Messages In This Thread
RE: Why don't companies pay dividends on a graduated scale? - by Dividend Watcher - 12-27-2021, 09:23 PM
RE: Why don't companies pay dividends on a graduated scale? - by Christinebitg - 12-28-2021, 07:26 PM



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