Dividends vs. Retained Earnings (Why Retaining Earnings Is Better Than Dividends)
Dividends vs. retained earnings – what is best from a shareholders perspective? In this article, I discuss dividends vs. retained earnings and where the capital compounds best: in your hands or in the company’s hands. Distributions and subsequent reinvestments are an inefficient way of compounding! Given certain assumptions, retaining the earnings is better than distributing…