The first - of - its - kind proposal asked Chevron to
increase dividend payments to shareholders instead of spending so much on unconventional oil, tar sands and other projects that could be rendered unprofitable by future climate policies or a related drop in oil prices.
There's one thing Georgetti did get right: Canadian companies have, on average,
increased their dividend payments to shareholders since the recession.
Indeed many (but not all), blue - chip companies (listed in the Dow Jones Industrial Index) have had a long history of
increasing their dividend payments to shareholders each year.
It thus follows that any business that's good enough to regularly and routinely grow profit enough to send out
increasing dividend payments to shareholders for decades on end is a high - quality business.
Not exact matches
The iPhone maker is raising its quarterly
dividend by 16 percent
to 73 cents per share, matching the largest
increase since Apple restored the
payment under
shareholder pressure six years ago.
As the economy grows over time, the stock - market, which reflects the value of companies as a whole, tends
to rise and many companies are able
to increase their
payments, or
dividends to shareholders.
Under this theory, firms can reduce agency conflicts between managers and
shareholders by reducing excess cash on hand, and by obligating managers
to make continuous payouts in the form of
increased dividends and interest
payments to creditors.
Each of the «boring» companies I mentioned above actually
increased their respective
dividend payments to shareholders right through the worst financial calamity my generation has ever witnessed.
If a company has too much spare cash, it may consider investing the surplus funds in new ventures and in case company is out of investment options it may be prudent
to return the excess funds
to shareholders in the form of
increased dividend payments.
This
dividend king has paid uninterrupted
dividends on its common stock since 1893 and
increased payments to common
shareholders every for 51 consecutive years.
Mutual companies are actually owned by the policyholders who are considered
shareholders and can receive
dividend payment distributions and may not be penalized by an
increase in premium due
to losses.