This gets under my skin... if things are so bad that travel is banned and positions are eliminated, why are we giving away money?
11 replies (most recent on top)
The dividends come from money that already belongs to the shareholders. The shareholders own the company. In a sense they need to decide if that money is better spent when used to pay for your continued labor or if it is better in their pockets.
There decision may be wrong, but it is their decision.
Amazing how folks complaining about working at Schwab don't understand the basics of how primary and secondary equity markets drive overall cost of capital and general financial health of a company. Because this is your industry! To cut a dividend is to signal something extremely terrible to the market, and that would not at all reflect the current financial position at the firm. Upcoming layoffs and declaring a consistent quarterly dividend are two completely different conversations and lumping them together to express your dissatisfaction with leadership proves you probably shouldn't be working at this company in the first place.
Confirmed: OP owns no SCHW
Great idea. If SCHW decided not to pay dividend, how would the market react? Headline from earlier this year:
First Republic Stock Tumbles 32% After Board Suspends Dividend
This board is filling up with nonsensical posts.
@mby+1pbcDJCT you got a lot invested in the ESPP dont ya?
Many shareholders would forgo some dividends if they felt the money could be used to solidify the health of the company or be used to build new products to enhance long term growth.
Not every investor is myopic.
Companies can thrive without shareholders. For an established profitable company, share price and dividends are only important to those who profit from it. For an unprofitable growth company, that must raise new investments to survive, investor sentiment matters quite bit. We aren't that.
All great companies balance the needs of their clients, shareholders, and employees. We have lost that balance.
@icz+1pbcDJCT Exactly! You shouldn’t be at home on WebEx calls with your team
You should be in a cubicle whispering quietly on WebEx calls with your team!
Paying dividends is not giving away money, shareholders are owners of the company and they expect return on their investments. Without investments from shareholders there is no Schwab.
Because the type of collaboration that happens when traveling is completely different than the collaboration you get when force people back in the office.
Because the share price is more important than the lives of hardworking employees