111–120 of 308 posts
It could be sanity prevailing, or it could be they're counting in the US to foot the bill for international conglomerates their economy depends on.
No need to worry. A trillion here, and a trillion there, and the US is headed for a default in the next 24 months.
Huh? In what circumstances would the US actually choose to default rather than simply printing money?
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It's probably a bit more nuanced than that. Dividends are often scheduled months in advance, based on (for instance) last year's profits. Having made a profit last year, and having promised a dividend months before corona doesn't mean you won't be struggling now.
So, the business then has the choice to use last year's profits to keep the business afloat or pay investors. Seems like an easy choice unless your only motivation is lining investor pockets.
Investors are often normal people like you and me, using dividends and the sale of shares to put food on their families' tables.
Maybe I'm not understanding something but why do they consider paying dividends as something bad? They are essentially excluding the majority of businesses using this criteria.
They don't want to pay out aid to companies that then just hand the aid money out to investors.
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Return from investment is nothing like salary.
Many workers are paid a majority of their income in the form of stock from the company they work for.
1. They are still paying your salary, and
2. They are still granting you stock, but
3. They have suspended dividends on the shares you were granted
seems like a reach. I'd definitely be interested in reading about it if someone actually tries it, though!
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Most tech companies don't dividend... you buy the stock or sell it based on their current profits.
I cannot for the life of me understand why’d someone who’s not an institutional investor (say Buffet) would want to own stock in a company that doesn’t pay dividends. It’s basically buying a vanity plate and hoping someone else will buy it for more down the road.
Danish lawyer here. The proposal only limits payments to companies that have received more than DKK 60 million (around EUR 8 million) in aid. So this is not your usual business owner. These are generally larger companies with a well paid management. As for companies registered in tax havens, the EU has made an official list of tax havens, which will be followed: https://en.wikipedia.org/wiki/European_Union_tax_haven_…
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Most tech companies don't dividend... you buy the stock or sell it based on their current profits.
I cannot for the life of me understand why’d someone who’s not an institutional investor (say Buffet) would want to own stock in a company that doesn’t pay dividends. It’s basically buying a vanity plate and hoping someone else will buy it for more down the road.
I keep saying over and over but the economic policy is something trump fucked up big time. He gave away the corporate tax breaks in times of prosperity when there was no need and the companies just made bank. He was dealt a great hand, a strong economy that would chug along no matter who the president was. Those are the times to focus on the poor and lift people up. Instead he wasted his opportunity on the tax cuts.…
I don’t think corporate tax break would actually be a useful tool right now - corporate taxes are on profits and the profits are going to tank for most businesses.
The forewent tax revenue now would have been useful for a larger payment protection program. Part of the cynicism and restrictions around current proposals stem from how the 2017 tax cuts excess monies were deployed (shareholder buyback and dividends, not hiring or pay raises)
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Is the promise of dividends binding? I don’t think so.
To my knowledge, it isn't. There is a date of ownership where the dividend eligibility is determined and then it is paid out a few weeks later. I would imagine those payouts are binding but a planned dividend for June could easily be rescinded without legal penalty. However it is priced into the value of the stock. Slashing dividends will tank the stock price. C'est la vie.
Stock prices usually drop after a dividend is payed out because each share now represents a claim on fewer assets.
Danish lawyer here. The proposal only limits payments to companies that have received more than DKK 60 million (around EUR 8 million) in aid. So this is not your usual business owner. These are generally larger companies with a well paid management. As for companies registered in tax havens, the EU has made an official list of tax havens, which will be followed: https://en.wikipedia.org/wiki/European_Union_tax_haven_…
EU countries are also not included in the list, so no Luxembourg etc