This reduced risk has prompted investors to pay higher prices for shares; in other words, to accept a lower dividend yield.
"I will accept a lower dividend if they are able to repay the government faster," said Chris Armbruster, senior analyst at Al Frank Asset Management in Laguna Beach, California, which owns JPMorgan shares.
Since equity investors could count on a steadily rising income, they were prepared to accept a lower initial dividend yield.Now, of course, dividends are being slashed.
Mr. Yingling said many healthy banks might want to take advantage of the Treasury's offer, but not if they had to suspend dividends or accept restrictions on executive pay.
Vikram Pandit, Citigroup's boss, must now work with the Fed to persuade the regulators to accept new proposals for dividend payouts to shareholders.The positive reaction of the stockmarket was revealing, too.
Instead of accepting four quarterly dividends each year, they take six.
This week Sacyr's boardmembers gave in and accepted the lower dividend.However, the Socialist Party is now proposing to scrap such bylaws, another of which has limited ACS's say at Iberdrola.
And Gianni, after accepting a large dividend to subsidize his lavish lifestyle, agreed to do so.
The public can understand this, if Barack explains it, and they will accept it, if there is 100% dividend.
Taxpayers would also have to accept withholding of taxes on interest and dividends, which they had long opposed, and much more extensive income reporting that likely would be viewed as an intrusion into privacy.
