Daily BriefsESG

Daily Brief ESG: “Stable Dividend” Tradition May Have Something to Do with Rewarding Cross-Held Shareholders and more

In today’s briefing:

  • “Stable Dividend” Tradition May Have Something to Do with Rewarding Cross-Held Shareholders

“Stable Dividend” Tradition May Have Something to Do with Rewarding Cross-Held Shareholders

By Aki Matsumoto

  • The Nikkei article addresses high-dividend investing as short-term strategy, while “Quality Income” is in demand by long-term investors seeking stable long-term performance. Both strategies have different investor segments and needs.
  • Many Japanese companies have basic policy of “stable dividends,” but it is easier for shareholders seeking to increase shareholder interests to understand a dividend policy based on clear cash allocations.
  • Given that Metrical’s analysis also found no correlation between changes in market capitalization and dividend policy scores, linking dividends and stock price is a difficult problem.

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