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"is a good deal for as long as the dividends continue" Posted by Bill Homer [Email] (#3427) [Profile/Gallery] (more from Bill Homer) on Tue, 24 Jun 2008 20:43:56 In Reply to: For dividends, it's a good buy, Caarma [Profile/Gallery] , Tue, 24 Jun 2008 11:11:08 Members do not see ads below this line. - Help Keep This Site Online - Signup |
From Wikipedia: "Dividends are payments made by a corporation to its shareholder members. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend."
The key part of this definition with respect to the current situation at GM (and the other two US car companies) is *earning a profit*. If there are no profits earned, it is unsound fiscal policy to issues dividends. So, do you anticipate that GM's dividend stream will continue at it's current payout?
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