The managing directors of three profitable listed companies discussed their company's dividend policies at a business lunch.
Company A has deliberately paid no dividends for the last five years.
Company B always pays a dividend of 50% of earnings after taxation.
Company C maintains a low but constant dividend per share (after adjusting for the general price index), and offers regular scrip issues and shareholder concessions.
Each managing director is convinced that his company's policy is maximizing shareholder wealth.