Thinking Differently About Dividends [Archive.org URL]

Many senior executives view dividends as a low priority on the strategic agenda. They’re wrong. The unique set of circumstances that made dividends unfashionable during the long bull market of the 1980s and 1990s is fast disappearing. In the current economic environment, dividends are an especially important lever for generating above-average shareholder returns. Revisiting a company’s dividend policy can also greatly improve the strategy debate among a company’s senior managers―whether the company ultimately decides to increase its dividends or not.

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