It's Time for First Solar to Start Paying a Dividend

It's an age-old business question with no simple answer: When should a company start paying a dividend?

While every business's leaders will have their own ideas about when their company should initiate a payout, there are some indicators that are pretty easy to spot. When top-line growth slows and there are fewer places to invest capital in growth, and when cash generation has become so strong there's simply an excess of funds on the balance sheet, it's time to look at a dividend.

Based on that, I think that First Solar (NASDAQ: FSLR) -- which has an abundance of cash, but is stalled on the growth front -- should begin returning cash to shareholders.

Continue reading

Source Fool.com