Dividends or No Dividends, That Is the Question [View article]
In the 70's and 80's, dividends used to be the primary reason investors bought stocks, before growth mania took over as the era of the great bubbles developed. As the back-to-back bubbles started in the 90's, pundits began to deride dividends as antiquated and stodgy.
Now that investors have finally perceived that the bubble era was just an illusion of unsustainable valuations growth, dividends are back in vogue. When people find that a stock is still worth what they paid ten or fifteen years ago, the only thing they have to show for their investment is dividends.
In the post-bubble era, dividends are back to stay, and companies that don't pay them, or reduce them, will see their stock values fall.
Dividends or No Dividends, That Is the Question [View article]
Now that investors have finally perceived that the bubble era was just an illusion of unsustainable valuations growth, dividends are back in vogue. When people find that a stock is still worth what they paid ten or fifteen years ago, the only thing they have to show for their investment is dividends.
In the post-bubble era, dividends are back to stay, and companies that don't pay them, or reduce them, will see their stock values fall.