I agree with you about changing dividend policies. It is not good for a
companies reputation. Frequent or arbitrary changes in the capital structure or
dividend policies can cause negative effects on cost of capital. Ratings
companies could lower the rating on the companies because of increased
volatility in the present value of the future cash flows.
 
Long term customers who own the stock and use the dividend to finance their
purchases will stop buying or trim back orders.
 
Now is the time for companies to focus on core products, supply chains,
distribution channels etc.  not dividend policies, layoffs and exec pay.
 
It is so sad to see all these global businesses going under.
What ever happened to simple supply and demand pricing?
When you create an a environment of seemingly tight supply and high demand you
get nice and fat until reality sets in and a child chants LIAR LIAR PANTS ON
FIRE!
 
Thats my two cents. Plenty more where that came from and its cheap. Realistic
pricing.
 
Fair player,
EF
 
 

--- On Tue, 10/7/08, rvdidit <rvdidit@...> wrote:

From: rvdidit <rvdidit@...>
Subject: [Advanced Option Strategies] Dividends the Mkts...
To: advancedoptionstrategies@yahoogroups.com
Date: Tuesday, October 7, 2008, 8:30 PM







Many stocks that once paid a 10 to 17% dividend now are paying 20 to 35%
because of the crash.
Some people say right away that tells them that the dividend will be
lowered or suspended... ...

I just cant believe for a second that after all the money these big
boys have taken from us already, that they would f*ck people over that
way as well, or even be allowed to. People who paid full price for
those stocks are depending on the dividend to live off of. If they cut
those dividends, and the people have to sell the stock at a much lower
price, then they are essentially ripped off.

Any other comments?

I'm tempted to buy some, but not if they are going to cut the dividend.
Do you think it will really happen? I had one happen on AFN, but that
dividend is 100% or so now.

RV


















[Non-text portions of this message have been removed]