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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 691.66-0.1%Jan 16 4:00 PM EST

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To: Johnny Canuck who wrote (47680)4/5/2012 8:17:06 AM
From: Johnny Canuck  Read Replies (1) of 69866
 
Dividend bubble??

Message 28062139

I agree with the assertion in the article that we are seeing more companies paying dividend because more investors are demanding it. As we are in a slow growth environment capital appreciation is going to be mutes. As most investors in Westernized countries are older in age or the mutual funds are being managed of behalf of investors of older years like pension funds the focus is on monthly and quarterly cashflow.

Mutual funds are following the demographic trend and companies like INTC and MSFT are following suit to retain institutional investor interest as there hyper growth phases are over and they are in a slower growth phase. It is hard to grow revenue by 20 percent when your revenues at $1 billion per quarter.
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