RE:RE:RE:10 yearssmall companies not earning a profit pay a dividend so they can raise money from rubes. in a hot oil market you can raise lots of money on an ipo if you promise to pay a dividend. rubes love dividends. for most of these companies it's little more than return of capital but since the rules on income trusts were tightened up they call it a dividend rather than return of capital.
think of trevor j plow.
goldens wrote: That is because their buisiness model is to generate dividends. They recently eliminated the dividend due to the low oil prices. I will stick with Paul. GLTA