Gotta reduce the dividend to pay the difference between the fleet of Mercedes and Bentleys. Also larger reserves for the increased gasoline consumption. My oh My oh My, these guys live well and who pays for it. YOU
Paying out more than they made ? There were a few companies that did that. Montgomery Ward, Pennsylvania Railroad, Lehman Bros and more. Where are they now? In the failed company graveyard BUT..their leaders have long since retired to Aruba with a few houses in the Alps and an airport or two that houses their jets. See a pattern here ? Or does the dividend make you feel like you are sharing the wealth with the family and friends ? The smart money got out when they spotted the family getting more greedy than usual.
The few of us that got out in November of 2007 around $14.00 to $14.50 saw this coming and jumped ship. So the hangers on (and Buffet wannabees) had their dividend go from about 3% (the price they paid) to 6% (new and improved market price) while they lost 50% on the stock price. So much for hangers on who didn't take our advise then and still believe that this company is the path to their riches. ho hum.