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What You Need to Know About Dividends

What You Need to Know About Dividends

Public companies are faced with two critical choices: 1) Deliver a share of your profits each year to your shareholders. 2) Keep all profits and reinvest them into the business. Theoretically, if the company is able to obtain superior profitability by reinvesting the profits that would otherwise be paid out to shareholders, then it should not pay dividends. On average, companies obtain a higher valuation by reinvesting their profits. However, shareholders achieve greater returns in the long run by being paid dividends on…

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Even the Rich Can’t Retire When They Planned to Anymore

Even the Rich Can’t Retire When They Planned to Anymore

The long recession and slow recovery in the economy have forced millions of Americans to give up their dreams of retiring at the traditional age of 65, with many now expecting to work until they’re 80 or older. That’s not surprising, especially given that fewer than half of all Americans have managed to save even $ 25,000 in retirement savings. What’s more surprising, though, is that even among those who have quite a bit more money stashed away for retirement,…

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This Election Day, Remember Your Constitutional Right To Carelessly Misrate Structured Credit Products

This Election Day, Remember Your Constitutional Right To Carelessly Misrate Structured Credit Products

Have you finished reading Judge Jayne Jagot’s 43,000-page opinion in the Australian CPDO case yet? Good, because we’ve got to move on to other things.1 Like: what does it all mean? One obvious thing that it could mean is “nothing,” or at least not very much. The case involved $ 30 million of damages, and there seems to be an Australian class action coming that might involve more damages, but it seems unlikely that CPDOs are going to track S&P…

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