Forum Archive Index - November 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

Hi Benjamin

 

I don't follow ITC, so I don't know what their own pronouncements on this issue are, however, in my opinion not only would this company paying a dividend be unlikely, it would furthermore be inappropropriate.

 

Essentially this is a venture capital company, thus they will be seeking to invest in companies with high risk/ high return characteristics. From this it would be logical to assume that they should be able to generate a higher return on retained profits than the shareholder could on the same money were they to distribute it back in the form of dividends - that, afterall, is the very rationale of the firm's existence in the first place. Indeed, if they were to adopt a dividend payment policy, this would surely be an admittance by ITC that they could not find enough suitable high return potential companies to invest in - as a shareholder, that should worry you.

 

Only my thoughts (taking a bit of time off work tonight).

 

Cheers

 

----- Original Message -----

From: Benjamin Reader

To: sharechat@sharechat.co.nz

Sent: 24 November 2000 8:26 PM

Subject: [sharechat] ITC Dividend

What are the chances of ITC ever paying a dividend?

 

Ben