dividend !!!, page-13

Camotrader,
I believe I know all the theory about retained earnings being the same as divi's etc, and as you argue BHP is taking their earnings and investing them at a good rate. But I am generally wary about companies holding back divi's and managing them well. The SP500 is to me a striking example of what a poor idea it is generally to let companies retain earnings. The divi rate on the SP500 is about half the ASX raw rate, and about 1/3 our rate once you include the franking credits. I just can't see what the SP500 has done with the remaining 2/3? Their nominal (dividend excluded) index has barely, if even, out-performed the ASX200 over 20 years, when it should have a guaranteed 2-3% kick along each year from retained earnings? Hence am suspicious of BHP and would like more cash.

Barney