George Gutowski

Citigroup's Dividend Announcement Strategy

The established practice is rooted in the past when technology was slower. This is not a good reason to continue. The financial impact would be one time but in favor of the investor who can earn at least the relatively low risk money market rates. My real concern is the hang time until the x date. The opportunity to slide out negative news under the dividend umbrella is tempting. In a post Enron era we should shorten up the hang time and remove the potential for problems. If the dividend is to be paid why have this long ball sailing across the scene for long periods of time.