If a company really makes too much money, let's say PE of 5, or very low price to cash flow ratio. What's the best way to protect shareholders interest, especially the majority holder's interest?
If I'm the majority holder, I would just use the excess cash to buy all the remaining shares and delist it. I don't want to share this enomous cashcow with anybody. Why didn't I do that? because it's not really what it looks on the surface.
The high dividend mostly comes from a dying business or high debt load. It's never sustainable to pay dividend with higher rate than that of a junk bond.
If a business is indeed minting money, it will go private. If it doesn't, it has no more growth, it's a matter of time before it's ultimate downfall.
Investment is simple, you just can't have wishful thinking.
If a company really makes too much money, let's say PE of 5, or very low price to cash flow ratio. What's the best way to protect shareholders interest, especially the majority holder's interest?
If I'm the majority holder, I would just use the excess cash to buy all the remaining shares and delist it. I don't want to share this enomous cashcow with anybody. Why didn't I do that? because it's not really what it looks on the surface.
The high dividend mostly comes from a dying business or high debt load. It's never sustainable to pay dividend with higher rate than that of a junk bond.
If a business is indeed minting money, it will go private. If it doesn't, it has no more growth, it's a matter of time before it's ultimate downfall.
Investment is simple, you just can't have wishful thinking.
you get in any investment. I bought BTI at 29 for its 10% secured dividend stock, now it is 42 and going on.
Key is you know what you are doing.
都是其中的佼佼者
因为它们会被盈利，去再投资，扩大再生产， 复利增长。表明上资金流/分红不多，甚至完全没有。
分红多的公司，是因为它们知道，无法高效的，将多余的钱，再投资回公司，扩大公司规模。
巴菲特的伯克希尔哈撒韦，完全没有分红。
苹果每年分红只有0.5%。
微软每年分红只有0.76%。
不懂股票为什么涨，至少有一点儿吧，象亚麻和埋它，这么多年一分不给，大抠了，微软和孤狗就好多了
有些股票十年不动，没有成长，成为分红股票,像MSFT和LLY, 从2003到2012,股票没什么变化,最近几年又变成高增长.CSCO和QCOM在2000年左右,是典型的高增长股票,现在也成为分红股票了.