{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Week 3 DQ - dividend is usually paid to an investor as a...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Here is a list of 10 companies that have launched IPO's in the last 12 months. 1. Responsys (MKTG) – 16.5% dividend 2. Carbonite (CARB) 3. Dunkin Brands Group (DNKN) – 2.0% dividend 4. Box Ships (TEU) – 13.5% dividend 5. Gevo (GEVO) 6. GNC Holdings (GNC) – 1.3% dividend 7. Bankrate (RATE) 8. Skullcandy Inc. (SKUL) 9. SunCoke Energy (SXC) 10. VOC Energy (VOC) – 8.0% dividend Out of the 10 companies that I chose, 5 paid a dividend for 2011. In most cases, I think the reason that most IPO's do not offered dividend payments is simple. A
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: dividend is usually paid to an investor as a return on their investment. AN IPO is in it's initial (hence the I in IPO) stages of expansion after receiving capital from becoming publicly traded. The IPO should be focused on its growth in its infancy. Paying out a dividend may be using money that could be critical to the long-term success of the company. Most people invest long-term and would rather be paid dividends for many years, rather than receive dividends immediately but jeopardize their investment in its totality....
View Full Document

{[ snackBarMessage ]}