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Dividend Increases: 9 Stocks [View article]
You're assuming that the industry in which the company operates is a growing one. As an example, how would you suggest that Altria (MO) expand their domestic tobacco sales, beyond their recent purchase in the smokeless tobacco segment? Their market has stagnated, and will likely decline even more in the future. Attempts to gain further market share would run afoul of antitrust regulations.
In such a scenario, it makes sense that they return the bulk of
earnings to their shareholders.
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