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Academics put the long-term trend in corporate profit growth at no more than 4% per year, not the 7% needed for dividend discount models to justify current stock prices.
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In retrospect, both the merger and dividend cut were needed for the company to emerge from energy's cyclical crash as a dominant industry player with a healthy balance sheet.
Under pressure from shareholders, the firm paid out billions in dividends and share buybacks that it sorely needed for investment.
He did so by eliminating the dividend for a year and pouring every penny not needed for expansion into debt reduction.
US Airways' Web site, www.usairways.com (click on Dividend Miles), has a chart listing the number of miles needed for free tickets on its partners.
"So we use what we need for operations, then bring back the rest" — passing the cash along to investors as dividends and through share buybacks.
Britain's dividend-obsessed financial markets fail the small, research-intensive firms the country needs for future growth.
We will continue to see very strong companies meet our needs for growing dividends.
Hence, the paper presents consistent evidence that increasing ownership of foreign investors and the state, in general, reduces the need for paying dividends in the Turkish market (Pfister and Schwarger 2016).
"There is a lot written about oil companies' dividends and speculation about needing to cut dividends," he said.
They don't need to pay dividends to shareholders.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com