So I understand that a good portion of companies that pay unusually high dividends are typically a trap, due to their share price depreciation that typically follows. My question is, if they know they are in a dying industry or even just a bad spot as a business itself, why pay out such a high yield? They know they’re dying so why don’t they lower the yield to fund more operations and accept the short term share price depreciation, and hope for better times in the future? Is this question simply answered by “that’s what good management would do”? Or am I missing something else?
Submitted August 18, 2021 at 11:59PM by grantnoblee https://ift.tt/2XFqsXl
