What drives firms to pay dividends? Advantages and disadvantages. Dividends are set by the firm's board of directors and can come in the form of cash or stock dividends. Instead of retaining earnings for expansion or investment in growth opportunities, the profits of the firm are converted into dividends for the shareholders. This means that high payout ratios are often paid by mature companies with limited opportunities for more growth, while zero to low payout …showed first 75 words of 2447 total…

…showed last 75 words of 2447 total…a good strategy plan explaining how they will face the new competition giving more uncertainty to the market. So, at this point we know that the company is doing well, and that is facing big challenges in the near future. We need more information to make a good decision. It is better to hold right now and wait to see what the management of the company have to say to make a more precise move.