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Increased common stock cash dividend signal to stockholders

Do you trust an increased common stock cash dividend can send any signal to the common stockholders? If so, what signal might it send?
An increase in cash dividends is frequently seen as a positive signal. A company would be unlikely to raise its dividend if it did not believe its future prospects were good adequate to sustain the higher level of dividends. It is because the market usually frowns upon a cut in dividends.

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