Keep the Shareholder Payouts Coming
A surge of shareholder activism has fueled debate about how companies should balance dividend payouts with long-term investment, but an economist at the University of Maryland’s Robert H. Smith School of Business says the money gets reinvested either way. "The money won for shareholders does not disappear," professor Peter Morici writes in a national column. "It may not get spent on immediate consumption but often gets reinvested. And that's where the cash often comes from to finance the next Google, Fusion or Shapeways." Read more...