1. Raising cash dividends attracts more investors than buying back shares.
2. Honda Motor Co., Japan's second- largest automaker, plans to pay out more of its profit in dividends to boost shareholder returns that have lagged behind Toyota Motor Corp to lure more investors even as it forecasts profit will fall for a second year due to higher costs for aluminum and precious metals.
3. The company will pay out 30 percent of net income in dividends within two to three years compared with 25 percent this fiscal year. The automaker plans to pay 80 yen a share this business year, up from 67 yen a year ago. The company is paying 20 yen every quarter this fiscal year.
More investors = lower cost of capital
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