RE:RE:Freddie/JD Capex, Divy, Buybacks opinionSome funds can only invest in dividend paying companies. Token dividends allow these funds to be investors. It can also be argued that token dividends signal future direction of the company, ie to pay more significant dividends in the future. Not sure I agree with the signalling but it is a reason I have seen used.
churchofnutsacc wrote: I do not agree with token dividends. Every last cent of free cash flow should go to paying down debt so that when the price of oil retreats (and it will), you are well possitioned to return capital back to shareholders. If you are not going to pay down debt at $90 oil, then you are never going to pay down debt.
Wouldn't it be nice to make money and earn divvies at $60 oil, and not have to rely on $90, or $100 oil?