Topics
| Topic |
|---|
| Module 7 Discussion |
 Dividends |
Dividends |
1. Gertrude and Gus are retired and have a substantial amount of savings in CDs. With rates near zero they are looking for a higher return and find a large company with a long history of paying dividends (30 years). The dividend yield is a whopping 5.4%. The company maintains a constant payout ratio of 80%. They are considering putting a portion of their savings in this stock and want your expert financial advice. Please provide Gert and Gus the positives and negatives of such a purchase.
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