Dividends in 2021, page-27

Ok, you reckon A2M has low liquidity because it's majority owned. Right, not sure about that, heaps of A2M trade every day, tens of millions of them.

Anyway, you've brushed off my point about dividends, so I'll try to say it a different way. Hopefully in a more polite manner than your gauche manner.

You, yes youthe shareholder, own that $1 in the bank as cash. Actually many hundreds of millions of $ in the bank, YOU OWN it. It's yours, through your shareholding, you own it! You get that right?

Ok, so you trust management and the directors to make the best decisions about the company, for you, because you own the company and appoint those directors.

Now for some unknown reason the Board decided to take YOUR CASH and give it back to you as a dividend. That's what paying a dividend is ... giving you your own money.

That dividend which is proportional to the number of shares you own, is real cash right now in A2's bank account. When they withdraw that cash and give it to you, either they (A2) or you, pay tax.

That tax is a LOSS on your money, had you kept it in the company. Instantly about 30% in round numbers) loss just because you took it, or were given it, from the company.

It's better always that the company you own re-invests surplus capital to grow the business earnings and capitalisation. This is a Buffet lesson, I didn't make it up. Just do the maths.

I don't have much more to say on it, so if you don't get it - about why paying a dividend is a stupid capital destroying idea - well, I'm not sure what to say so won't say anything more.

cheers