A lot of companies have high debt levels and pay very high dividends. Is this really in the shareholders interest?
Volkswagen has around 180 Billion in debt. If they used their profits to reduce that debt instead of paying a dividend, future profits would grow since less interest payments would be needed. Also the company would be more safe and likely to survive a downturn or have the cash to invest (EV investments). Also the less debt VW has the cheaper the interest rate should be.
Instead they pay a high dividend even with high interest rates which could increase further. Why?
Submitted July 06, 2023 at 01:22AM by filthy-peon https://ift.tt/bZjUEuK
