Even their regular dividends were increased from 8 cents per share per quarter to 16 cents. This is quite a high rate of increase. This sort of announcements was also made by banks like Wachovia and Mellon, and consumer staples like Altria and Kraft. The attitude of the investors can be seen from the fact that the companies which have traditionally paid dividends have performed better in terms of share price than shares which do not pay good dividends, and this change has started from the beginning of 2004. Part of the change in attitudes of the companies may have come because of the reduction in taxation, which has been discussed already. (Dividends Are Back!)

Even in Europe, companies like Carrefour have increased their dividends, and this has led to improvements in market values of their stock. We are all aware that ordinary stocks do not guarantee the payment of...
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