The Pros, Cons and Paradoxes of Dividends (at Seeking Alpha)

by: Lance Helfert posted on: June 22, 2008 | about stocks: C / TIF Entrepreneurial investors have a low tolerance for broad generalizations and so-called “conventional wisdom.” The frequent and sometimes fanatical debate over the pros and cons of dividends perfectly illustrates the reasons for our disgust with the passionately argued nonsense that so often passes for investment advice. Dividends have been in the news a lot this year. Companies like General Motors and Citibank have been attacked in the press and blogosphere for continuing to pay dividends even as they rush to raise capital elsewhere. Other companies take heat for lowering or eliminating dividends (or for not paying them in the first place). We think it’s appropriate for shareholders to question these decisions, but one should fully understand the role of... [read full story]