However, theoretically, they could experience a dramatic increase in the future, if the company is run well. According to the article in Forbes magazine entitled "A Progressive dividend policy," the final outcome for Progressive shareholders is likely to be an increase in profits during most ordinary, reasonably profitable years, although now dividends will be paid annually rather than quarterly (Carlson 2006, p.1). (This may also be seen as a negative by investors, who might want to pocket the dividends as soon as possible to reinvest and therefore make more money and capitalize upon their income in other ways).

What would change if Progressive Corporation used another dividend policy?

According to longtime investment analyst Charles Carlson (2006), dividend payments can take a variety of forms -- from increasing to omitting payments altogether, to paying special dividends during historic changes, to radically varying the schedule of payment. But the Progressive Corporation's strategy...
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