Recently, some listed companies have suddenly announced dividends after earning huge profits, which has sparked controversy over huge dividends. Indeed, it is not advisable to use ** as an ATM and only pursue immediate benefits while ignoring the long-term development of the company.
First, for investors, a surprise megadividend may bring short-term returns, but it is an exploitation for long-term investments. **Rather than just being used as an ATM, investors should base their investment decisions on the company's long-term growth prospects. Large-scale dividends ignore the company's long-term development needs, which may lead to the company's dilemma of facing a shortage of funds in its future development. Investing is a long-term act, and investors should focus on the long-term profitability and value of the company, rather than purely pursuing immediate benefits.
Secondly, for listed companies, surprise huge dividends may lead to unreasonable resource allocation. The company's profits should be used to continuously invest in R&D, technological innovation and market expansion to improve the company's core competitiveness and brand value. The sudden huge dividends will lead to a shortage of funds for the company, unable to meet the investment demand for new projects, resulting in the disadvantage of the company in the market competition. Only pursuing short-term interests in the near future, while ignoring the long-term development of the company, may eventually lead to the company over-relying on the profits brought by dividends, and lose its core competitiveness.
Finally, for the market as a whole, a surprise huge dividend may lead to market volatility and a shake in investor confidence. Surprise huge dividends will not only trigger investor greed, but may also trigger market instability. Companies that are overly profit-conscious will lure investors to buy their shares, and when the dividends are over, the stock price may be substantial**, causing panic and turmoil in the market. **As a fair and just trading venue, enterprises should be encouraged to develop steadily, rather than excessively pursuing short-term interests.
To sum up, it is not advisable to surprise a huge dividend before listing. Rather than just being used as an ATM, investors should focus on the company's long-term prospects rather than purely pursuing immediate profits. Listed companies should rationally distribute profits and continue to invest in R&D and market expansion to improve their competitiveness. The market should create a stable and fair trading environment to encourage the long-term development of enterprises and long-term investment by investors. Only in such an environment can we develop better and provide support for the healthy development of the economy. Kunpeng Project