New investors often wonder why companies pay dividends to investors. Given that not all companies are in a position to pay dividends – and even those that can pay dividends sometimes do not – why should a company pay dividends to investors?
This is a very good question.
In fact, dividends are a very “old school” part of any stock investment. A long time ago, most companies paid dividends to investors. That’s the very reason that anyone would ever consider buying a stock that pays dividends. Investors wanted access to the cash flow that a company generated and would naturally seek out the safest dividend paying stocks.
A New Type of Investing
In this “post-dividend” world, investors often buy shares of stock to sell them after a capital gain has been realized. That is to sa
More than 40 states have joined the multi-state, multi-billion-dollar settlement with the five largest mortgage servicers, including Arizona, Michigan and Florida, The Associated Press reports. That’s the one Oregon Attorney General John Kroger said last week he’d join. California might sign on, the Los Angeles Times reports. Nevada is still mulling it over.