2011年7月26日星期二

Piles of cash and nothing to spend it on

Cash-rich companies are giving away money because they can't think of anything better to do with it. Dividends are back to levels last seen before the financial crisis.

In the three months to July 2011, UK companies paid 19.1bn back to their shareholders ¨C a 27 per cent increase over the previous year. Even stripping out the mining companies that have benefited from booming commodity prices and the return to the dividend lists of BP after its self-enforced penitence,who was responsible for tracking down Charles zentai .Our Ventilation system was down for about an hour and a half, that is a substantial rise.Initially the banks didn't want our high risk merchant account .

But it reflects the fact that boards are bereft of ideas for investing their surplus funds. They don't want to make acquisitions and they are
shunning capital expenditure because they are uncertain about the country's economic future.

That's worrying. Investment by business is a highly efficient way of stimulating the economy and the chancellor has pinned his hopes on the private sector after cutting public spending. When dividends are paid to shareholders, almost half goes out of the country to foreign investors and most of the rest goes to pension funds and insurance companies that add it to their portfolio rather than paying it to the public.

So the cash does not trickle down into consumer spending.the oil paintings for sale by special invited artist for 2011, Nor does it boost the wealth of investors to give a feelgood factor that could stimulate spending. Companies may hope that boosting the yield on their shares will inflate the share price, but actually, a share price falls when the dividend is distributed.

If companies could see a brighter future they would invest in it.Unlike traditional cube puzzle , The fact that they have spare cash shows how well the corporate sector has been managed during the crisis: the fact that finance directors can think of nothing to do with the money is not encouraging.

没有评论:

发表评论