Interesting discussion in the office today with some of our analytical team:
Will any of the cash rich companies who have been sitting on the fence about issuing dividends reconsider their positions? What about a one time special cash dividend before the tax rates go up next year?
Think of companies like Apple (AAPL), Berkshire (BRK’a), Google (GOOG), Exxon Mobil (XOM) and Microsoft (MSFT).
I am sure others have thought about this previously; its nothing new, but it is intriguing.
What might the impact of this distribution be on the economy? Do keep in mind that many dividend paying companies are held in tax deferred accounts.