2 Stocks That Need to Eliminate Their Dividends, and 2 That Should Offer Payouts
Dividends have long served as a vehicle for stock stability. Many investors appreciate such cash flows, and when companies have dividend obligations, it tends to minimize the trading instability that leads to extreme stock price swings. However, business conditions can change, creating situations where longtime dividend stocks are increasingly unable to fund their payout obligations.
On the other hand, there are situations where one-time growth companies become cash rich as they mature and attain a level where it would seem they can easily afford such payouts. Such a move would not only enrich shareholders over the long term but also provide the foundations to maintain company stability over time.
Let's look at a couple of examples of both scenarios and see what they might mean for potential investors.
Source Fool.com
