FOCUS Malaysia did a credible write up on dividends in Malaysia. There are still a few major issues which were not highlighted in the article. We need to fully appreciate the paradigm of investing, of listed shares, the expectations of investors and the real nature for dividends. 1) All things being equal, dividends are positive. Let's first examine WHY there are listed stocks. If we cannot grasp that, no point debating further. A stock gets listed for TWO MAIN REASONS, the other reasons are secondary. One, is to raise capital to power growth plans for the company. Two, to allow for investors to participate in the prospects and potential growth of the company. p/s: pics of Zoie Tam Hoi Kei, ...I like 2) There are investors who invest because of the stability of the business and the predictable profit streams. These are usually termed as blue chips, the ability to sustain profits growth and maintain stable dividends. A lot of long funds will want to invest in them. A lot of retiree ...
