Dividends Are Evil

[Dan Mac @DGSInvesting]

There are some companies that certainly feel that rather than pay out dividends, they can put that money to better use growing the company. However, there comes a point where more growth is difficult and what you are actually accomplishing is money waste. At that point, companies need to realize this and begin paying out a portion of profits to shareholders. I'm much rather get part of the companies profits in my bank account while management retains part to grow the company as compared to management automatically thinking they can earn a better return on money than I can. Oftentimes this may not be the case.