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Message: <blockquote data-quote="ECMO3" data-source="post: 9236167" data-attributes="member: 7030563">Is this guy actually a financial analyst, because a couple things he says are completely different from my understanding and experience.I don't think companies actually take out loans to issue dividends.  If they don't have cash for that and they want to ussue a dividend, they typically issue more stock to cover it.He also has it backwards when he says the stock will go down if they don't issue a dividend.  Issuing a dividend is what will make the stock go down (nominally by the value of the dividend).  Their current cash position is already baked into the stock price and reducing cash through a dividend will almost always make the stock price drop.  If they want to keep the stock price high they should not issue a dividend.</blockquote>