The small earloom that changed the dividend policy

Original link: https://mercurychong.blogspot.com/2023/05/blog-post_23.html

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For the whole year, the performance of the small earlobe can be regarded as flat, but when many companies generally performed poorly this quarter, stability is already a good performance.

The bright spot is that the dividend has increased considerably. After taking away the one-time special dividend of 18 cents this year, and adjusting the dividend of the first phase of last year to the bonus share, the dividend is actually from last year. The increase of 7.5 cents per share to 12 cents or 60% salary increase this year is very exaggerated.

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The company also announced last night that it decided to change the dividend policy. In the future, 60% to 80% of the profit will be distributed as dividends, so there is this remarkable salary increase.

Some netizens questioned whether the company changed its policy to pay dividends so generously and did not retain more profits as funds for expansion. Does it mean that the company’s future development is limited?

It is undeniable that this doubt is indeed logical, but after thinking about it, Uchitech or beer companies such as HEIM and Carlsberg are also companies that have distributed more than 90% of their profits in most of the past ten years, although they lack Explosive but the long-term profit performance is still gradually rising or stabilizing, so I personally think that this is just a hint that the company has changed from a growth model to a dividend model, which may not meet the tastes of some more radical investors, but this is a transformation of the company rather than a deterioration changes.

Therefore, how to choose depends on what kind of investor you are at the moment. No company can cater to everyone’s taste. Every company has different advantages and disadvantages. There is no benchmark.

Just like being a human being, try to recognize your own strengths and accept your own shortcomings, without underestimating yourself or being arrogant. Learning to expand your strengths and improve your weaknesses is not easy, but you can make those bad things part of yourself and downplay its impact.

come on ?

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