RE:RE:RE:Why issue?Except it's not the short thesis at all. Their issue is with disclosure and treatment of capex, not how it's issued.
And why issue shares when those shares pay a dividend, becaues you're adding assets that will fund that dividend.
PROtrading wrote: That's exactly the short thesis! Don't borrow by dilluting your shares to pay existing shareholders!
It's effectively a shell game, taking money out of someone's back pocket to pay them in a more visible way! Yeah, you can do that and fool JoeSixPack until the music stops and the game is exposed.
bek816 wrote: Those are two questions. A lot of companies raise capital by issuing new shares. This is nothing new. It can be cheaper than going to the bond market or securing a line of credit. The dividend increased because the profilts from their capital investments supported it. If you can issue a $1B in new shares, which costs you 5% dividend per year, but with that equity you make investments that produce 15% per year, you're still ahead of the game.
Miran1 wrote: Honest question.
why go to the market and issue more shares to dilute and pay out such a high dividend and increase it for the last 12 years?
why take on more debt?