Business
Banks’ dividend dilemma: Can they Ponzi their way to higher payouts? – Sydney Morning Herald
ANZ chairman Paul O’Sullivan was playing it carefully when he told shareholders he understood their hunger for dividends yet warned that future dividend policy…
It is not a sustainable position for bank shareholders who are looking for progressive dividends.
DRPs – characterised by some as a Ponzi scheme – involve issuing new shares to pay for dividends. They are dilutionary for shareholders because for one, there are increasing numbers of shares on issue – and then these additional shares become eligible for dividends.
One only needs to follow the fortunes of NAB, which got onto this DRP dividend merry-go-round in 2015 and ultimately had to rebase its…
-
Noosa News5 hours agoShocking moment Bradley Donald Towle arrested after Bruce Hwy rampage and shooting on Sunshine coast
-
General21 hours agoPope Francis, the 266th pope, has died
-
General19 hours agoFounder Schwab quits as World Economic Forum chair
-
General6 hours agoNSW Police to provide update on Sydney woman’s kidnap from Bankstown home and killing