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…
-
General18 hours agoVictorian school teacher charged with soliciting child abuse material
-
General9 hours agoAustralia loses ODI series to South Africa with defeat in second game in Mackay
-
Business24 hours agoWhy Telix shares could rocket 60%+
-
Noosa News24 hours agoBrisbane news LIVE updates: University gains Olympic scholarships