Tuesday, October 27, 2009

Public Companies who pay dividends.

Once the general public begin to wake up what is really happening behind the scenes they will realize the following.
1. If a company can pay dividends to shareholders one of the following is true.
(a) That company is cheating its workers and is not paying them their full worth.
(b) That company is charging too much for its products or services.
(c) A combination of (a) and (b)
2. Because public companies are allowed to issue common shares, it is the equivalent of having a printing press that makes money. Many public companies are not run by good business men and some companies operate on the fringe of the law such that they need a sea of in house lawyers to fend of litigation. Some of these companies are run by wide boy type businessmen. Should we not have stricter checks on who may become a director of a public company?

Once the common man realizes these factors, he will not want to work for a company that pays dividends. Once the supply of staff becomes scarce to these companies, they will have to start to pay a premium to hire staff. Once that happens the dividend pool will be depleted and companies who pay dividends will be forced to operate in a more open and socially friendly manner.

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