ilmscore | Prediction Details
"when it comes to saving the money in a company you got to think from the perspective of a business owner if a company makes a $100 million of profit and the kept the $100 million in their bank account well that's dead cash sitting there not every company wants a ton of dead cash sitting there because the $100 million isn't generating a return for the company companies want to do something with their money or at least give this money to their owners and so if a company has a big enough bank account or a big enough savings account they might not want to save more money which then brings us to option two which is reinvest the money back into the company"
By Minority Mindset | August 18, 2024 | Pending
From video
Stop Chasing Capital Gains: Why Cash Flow is the Real Wealth Builder 00:08:19 - 00:08:53
Interpreted Prediction
Companies with large profits have three options: save the cash (which generates no return), reinvest it in the company for growth, or distribute it to shareholders as dividends if they have sufficient reserves and growth opportunities are limited.

Prediction Details

Topic
Dividend Payout Decisions

Comments

0 comments

Be the first to share your thoughts.

Like this prediction?

Join to make your opinion count.