Dividends: Managing Expectations
To celebrate the upcoming edition of the Strategic Corporate Finance Executive Program, we invite you to join us in an interactive webinar with Professor Ignacio Magro.
In theory, companies should pay dividends if they generate returns and have spare cash. However, this is easier said than done. In practice, companies do not follow this statement because human behaviour is more complex than this.
How can Apple, Dell or Google maintain historical low dividends payments? And why some mature businesses such as telecom incumbents and utilities may be penalized for paying out too much cash to their shareholders? The answer relies on management expectations rather than on a financial rationale.