No. of Recommendations: 27
WHY do msft,aapl, goog, etc pay a dividend? WHY? Ignorant management? WHY?
Why? Because it's an age old custom and there are enough rubes who think a dividend is free money, so they are attracted to dividend paying stocks. It may have made some sense many years ago, when selling 100 shares of a $10 stock periodically to supplement your income would cost you $200 in broker commissions. These days, when the sales commission is zero for almost everyone, it makes absolutely no economic sense to pay dividends. But hey, the rubes are still out there.
Elan
