Ann: Dividend/Distribution - RFT, page-30

I was expecting a buying frenzy today...Mumma and Pappa investors generally look for dividend paying companies for extra retirement income. I’m guessing it all comes down to advertising and marketing, if people don’t know about the stock they’re not going to consider buying.

A penny stock announcing an annual dividend payout shows an enormous amount of confidence in future prospects and revenue streams. If RFT needed the money for R&D or expansion, they would hold onto it.

I’m a little bewildered by this and I need to do more research, as I was under the impression that companies like Telstra have a relatively stagnant stock price because all their surplus profits goes to dividends...