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The last thing companies should be doing right now is paying dividends

  • Written by Andrew Linden, Sessional Lecturer, PhD (Management) Candidate, School of Management, RMIT University
The last thing companies should be doing right now is paying dividendsShutterstock

The economic heart attack induced by COVID-19 has revealed an ugly truth – many very large companies have too little cash to ride out sharp downturns.

Cash flow variability, and the inability to retain earnings to buffer that variability, is one of the most common reasons small businesses fail.

Because large companies have raised...

Read more: The last thing companies should be doing right now is paying dividends

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