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HP, Goldman, and Mastercard -- pay your investors!

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March 23, 2010 – Comments (4) | RELATED TICKERS: HPQ , GS , MA

I'm back at it again, scolding companies that just don't share the company riches with investors like they should. Last time I picked on Apple, Google, and WellPoint -- none of whom pay any dividends at all. This time I heckeled Hewlett-Packard, Goldman Sachs, and Mastercard.

What can I say? I think investors deserve better.

Matt

4 Comments – Post Your Own

#1) On March 23, 2010 at 11:03 PM, TMFHousel (91.51) wrote:

BOOOOOO

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#2) On March 23, 2010 at 11:09 PM, TMFHousel (91.51) wrote:

I should explain the above comment. Matt and I have been in a long debate over whether companies should pay dividends over hoarding cash. He's typically for payouts, I'm typically for hoarding. 

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#3) On March 23, 2010 at 11:14 PM, SockMarket (42.12) wrote:

Buffett wrote some good stuff on this, you should read it. I personally like divs but don't really mind if companies don't pay them.

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#4) On March 24, 2010 at 2:00 PM, TMFKopp (98.13) wrote:

@TMFHousel

Boooo yourself, you're WRONG!!!

 

@danielthebear

Buffett has said a lot on dividends, but mostly what it boils down to is that the ideal situation is to be invested in a company that doesn't pay dividends because it has lots of fabulous ways to invest earned capital at high rates.

The issue is, what happens when you have a superb company that doesn't have enough opportunity to reinvest capital? What do you do? Stash it in low-interest-rate bank accounts? Chase after pie-in-the-sky projects? Make massive acquisitions? 

NO! You pay dividends. 

In fact, take a peek at Berkshire's portfolio -- a heck of a lot of good dividend-paying companies in there.

Matt

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