Corporate executives have an ability to send 'signals' to the market about the health of their organization. One such signal is dividend policy. In particular, if a company increases its dividend - particularly in a bad economic environment - it signals management's confidence in the company's future prospects. It also indicates the company has the cash to continue paying its dividend.
May 2020 US Dividend Increases
May 2020 US Dividend Increases
May 2020 US Dividend Increases
Corporate executives have an ability to send 'signals' to the market about the health of their organization. One such signal is dividend policy. In particular, if a company increases its dividend - particularly in a bad economic environment - it signals management's confidence in the company's future prospects. It also indicates the company has the cash to continue paying its dividend.