A New Look at Dividend Strategy

Abstract

From a strategic point of view, focusing on dividends is putting the cart before the horse. What directly affects the long‐term economic performance of a firm is how much of its cash it plows back into the business. Dividends should be a potential use for funds remaining after key reinvestment decisions are made, rather than the other way around.

Citation

Lauenstein, M.C. (1987), "A New Look at Dividend Strategy", Journal of Business Strategy, Vol. 8 No. 1, pp. 80-88. https://doi.org/10.1108/eb039192