WisdomTree Research came out with an interesting report that discussed the changing trends in the dividend world. For a long time, you could divide the universe of stocks roughly into two categories. For the most part, high-growth stocks didn't pay substantial dividends, as they sought to reinvest as much of their spare capital as possible back into their business to maximize total growth. On the other hand, once an industry became mature, it no longer needed all that capital to grow, and so it could afford to pay some of it out to shareholders as dividends.
Recently, though, there's been a changing of the guard in terms of high-growth industries and mature industries. Most notably, the biggest technology companies have gone from being lightning-fast-growth leaders to becoming cash cows with huge reserves on their balance sheets -- and they're starting to pay dividends.
Source: Daily Finance
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Posted by D4L | Wednesday, September 19, 2012 | ArticleLinks | 0 comments »________________________________________________________________
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