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Re: RyanW439 post# 16905

Tuesday, 12/15/2009 6:25:53 PM

Tuesday, December 15, 2009 6:25:53 PM

Post# of 94785
That logic doesn't compute.

The purpose of a dividend is to attract long term investors which help a company maintain a high market cap. As such, it makes it easier to capitalize.

You also have around 33% subsidies in China Agriculture to consider as well as the margins.

Most OTCBB's struggle to maintain a solid investor base. A dividend is a good way to cure that problem.

A public company's growth is just as much dependent on sales as it is on it's market capitalization. In most cases a investor who receives a dividend will likely re-invest that into the company, thus providing not only liquidity but helping the company further maintain capitalization.

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