Why We Don’t Like Dividends of Banking Firms: 4 Very Good Reasons
publication date: Sep 4, 2013
It’s sometimes easy to lose sight of the fragility of a banking firm’s business model. Let’s examine the reasons why we don’t like banking firms’ dividends. Reason #1: A Bank Run Is Always Possible. Reason #2: Our Competitors Have Tried to Invest in Bank Dividends and Have Failed Miserably. Reason #3: Cash Flow Is Not Meaningful at Banks. Reason #4: There Are Plenty of Other Options.
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