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what are some of the general characterstics of dividend paying firm

what are some of the general characterstics of dividend paying firm
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Some of the general characterstics of dividend paying firm

  • Stable and mature cash flows
  • Maturity in life cycle
  • Diminishing investment opportunity set
  • Flattening growth and profitability - usually single digit growth rate in sales, EBITDA
  • Declining systematic risk
  • Generating more cash internally than it can profitably invest.
  • Relatively larger, are more profitable
  • Have greater cash reserves
  • Have fewer growth opportunities
  • Nearly debt free
  • Net debt (Cash - debt) is negative and large
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