Beware The Script Dividend Phenomenon

Script Dividend – Many investors rely on their annual dividend cheques to boost their regular income, whether it be retirement income or income from employment. And most public company managements realise this. Indeed, last year Wall Street research revealed that most management teams put payment of the dividend in front of capital spending and debt repayment.

Global Small-Cap Dividends Crushing It in 2016

The pressure on companies to continually pay and increase their dividends has now got to the stage where many European companies are relying heavily on the take-up of script dividends (which provides a payout in stock) to reduce the pressure on cash flows and maintain dividend growth. By issuing a script dividend firms can maintain the headline...