Sentences with phrase «management pays a dividend to its shareholders»

When a company's management pays a dividend to its shareholders, its a serious commitment as the company tends to give regular (increasing) dividends in future.

Not exact matches

When a company generates a profit, management has one of two choices: 1) They can either pay it out to shareholders as a cash dividend or 2) retain the earnings and reinvest them in the business.

The discipline required to consistently pay a dividend also has a way of discouraging management from wasting shareholder money on quixotic empire building or on overpriced mergers that fail to deliver value.

Although these are generally small - to medium - cap companies, certain large caps have also decided not to pay dividends in the hopes that management can provide greater returns to shareholders through reinvestment.

Paying a dividend year in and year out forces management to be conservative, efficient, and responsible with shareholders» cash.

I routinely scan for dividend increases because that tells me the company has the cash necessary to pay shareholders a rising stream of cash, and management is confident about future prospects.

But even if that's not the case the company is very cheap based on both book value and cash flows, and best off all management is incentivized to create shareholder value, is paying a big dividend and buying back stock.

«Why is it that from the date of the company's IPO in March 2007, through the end of 2011, cumulative management and incentive fees paid by Tetragon to Polygon, at $ 300 million plus, exceeded cumulative dividends distributed to Tetragon shareholders by almost 50 %».