Dow’s Theory on the Role of Dividends and Earnings

Dividends are a reward after earnings have been applied to improving prospects

“It may be said that only a part of these gains in earnings can be fairly credited to dividend accounts.  That is true, because it has been deemed wise to take a portion of the earnings in each of the cases above named for betterments (Dow, Charles H.Wall Street Journal. Review and Outlook. October 12, 1900)."

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