One capital market expert cited instability in dividend policies and uncertainty about the amount and timing of corporate dividends, as well as a lack of transparency in how companies maintain profits.

In an interview with ISNA, Majid Amrooi, stating that many investors prefer physical assets to financial assets for various reasons (purchase and maintenance (as a source of profit), said: This leads to a short view The term has shifted to the capital market and the focus on capital gain instead of analyzing and buying stocks with cash flow.

He continued: “Among the reasons for this issue are instability in profit-sharing policies and lack of transparency in how to maintain profits in the company.” Hence, the shareholder is faced with a black box on the day of the meeting. In a way that does not have information about the amount of dividends of the company and the time period of its payment.

According to this capital market expert, companies can enable investors to choose a long-term investment strategy by announcing their next five-year dividend policy.

“Another factor that has reduced the willingness of investors to buy and hold stocks with a long-term view is the payment of dividends on an annual basis with delayed erosive and time-consuming payments,” he said. Other assets often have tangible, short-term cash flows (such as rental property). In many stock exchanges, however, dividends are set on a quarterly basis and monthly payments.

He added: “On the other hand, in addition to the annual dividend, it is paid within eight months and sometimes much more after the day of the meeting.” In this case, the investor loses his desire to buy and hold shares and use the annual profit. Also, the lack of control and supervision over the payment of dividends has made it difficult to follow and receive dividends, especially for real shareholders, and many do not consider it desirable to attend and receive dividends in meetings.

By admin

Cresta Help Chat
Send via WhatsApp