Moody’s: Companies Cutting Capex To Pay Dividends

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Rupert Hargreaves
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Updated on

One of the more concerning corporate trends that’s emerged over the past few years has been the rising value of dividends  to shareholders of public companies at the expense of capital investment, as some anti “activists” like Marty Lipton have noted. Analysts at ratings agency Moody’s have crunched the numbers to find how just how widespread this trend is and they published their findings in a report at the end of last month.  Companies Cut Capex To Pay Dividends Since 2004, the ratio of shareholder compensation to capital spending has jumped sharply since 2004. Moody’s calculates that for the span…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk