A Letter to Corporations About Their Dividend Policies

Most companies believe dividend investors occupy the fringe of their stakeholders and are not worthy of much attention. In short, most American corporations care more about what their customers think than what their shareholders think. In doing so, you miss a wonderful opportunity to attract and retain an incredibly loyal set of shareholders who take a much longer view of their holdings than do the hedge fund or money gunners.

Listen to the voices of investors who are looking for rising incomes and want to own companies they can count on for the long-term. Better yet, listen to your own heart. If a dear friend said they were looking for a great company with a great dividend, how would your stock stack up? Stop playing the shell game of stock buy backs and whack-a-mole quarterly earnings, and start playing the game where everybody wins: pay out as much of your free cash flows as you can in dividends. Seventy-nine million Americans will thank you, as will countless foundations, churches, colleges, and retirement plans.

Source: Rising Dividend Investing

Related Articles:

• Increasing Dividend Yield Part II: REITs
• The 2010 Dividend Aristocrats
• Dividend Stocks Secret Ingredient
• In Dividend Investing, Cash Is King
• Yield on Cost: Measuring for Success