Readers of my blog would know that I love dividends from my investments as they provide a good cashflow turnaround for my daily life's activities.

I love companies that return good shareholders' value in the form of dividends. To me, distributing out dividends to investors is something that is  tangible and should be the number one priority for every companies especially if they are having a stellar year in profits. However, some companies may choose to use their earnings to repurchase their outstanding shares from the open market instead.

Let's use a company that I own - Sembcorp Industries - to make the case.

For years, the company does not have a fixed dividend distribution policy to investors. But it has a payout ranging from 30% to 45% in recent years. The reason for the lower dividend payout to investors is because the company is often engaged in their daily (Read more...)