Less dividend for shareholders

What have large companies done with their profits in recent years? Have they paid dividend to their shareholders or put their money away for later?

Dividends as share of net profits

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Shareholders losing ground

In 1992 more than 44 percent of net profits were paid out to shareholders, compared with 31 percent in 2000. Shareholders have lost ground in this period as retained profits have become more important.

This is less true for internationally oriented companies. Companies owned for more than fifty percent by a foreign parent companies have paid out relatively most profits to that parent company in recent years.

Frank Bonger