The Declaration of Dependence
Dividends in the Twenty-First Century
by
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More compelling still, firms gain value through positive reputations. The pursuit of a positive reputation in a product market is readily visible through brand naming, testing, quality control procedures, and product consistency across markets or time. Reputation can add an intangible value to a firm. Moreover, reputation contributes relatively more when there is underlying uncertainty as to the process that generates fundamental value. Firms establish reputations in debt and equity markets, too. The continuing payment of dividends supports overall corporate financial strategy in which the firm is known among outside parties to be a dividend payer, periodic borrower, and occasional issuer of new equity shares. Firms that perceive a continuing need for capital expenditures will want assured access to capital markets. Their reputation and a capital market connection have a positive association.
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About the Book
When it comes to investing, it’s not all about earnings per share.
Many investors pay just as much—if not more—attention to whether a company pays dividends, dividend yields, and how fast dividends are expected to grow. Whether you’re an investor or corporate executive, it’s important to consider how dividend policy can inflate or deflate stock prices.
This book provides valuable insights into how dividend payouts affect success. Topics include:
• origins and types of dividend payments;
• taxes as an influence on dividend payments;
• stockholder reactions to dividend omissions, initiations, and reductions;
• utilities and why they consistently pay high dividends.
The author highlights how managers of larger, more mature firms establish a declaration of dependence between their firms and their investors. The payment of a regular dividend, which fluctuates much less than underlying earnings, is not required by law but can be a sacred compact among investors and managers.
Take a key step in evaluating your company and/or investment portfolio and stay on track with The Declaration of Dependence: Dividends in the Twenty-First Century.
About the Author
Jeffrey L. Huston, a native of Ohio, graduated from the University of Akron, the University of Cincinnati, and Old Dominion University. He spends his time consulting, teaching, and writing—and his clients include electric and natural gas utilities. He lives in Virginia Beach, Virginia, with his wife of thirty-five years, Leigh.