At what point does the market believe they are over-extended on their dividend and start punishing the stock? Their systematic raising of the dividend has become an albatross of marketing. Saying they always raise the dividend is one of the great mantras of the Company, so they can never stop rasing the dividend, as doing so telegraphs a big stall in their growth. Sort of a Catch-22.
Well said. I'm not sure at what point the dividend becomes completely disproportionate to earnings. The dividend/return is okay, however, I believe we would all like to see some stock appreciation also. Only way this will happen is with higher earnings or stock buy back announcement that is really a buy back, showing management confidence in the company.