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Shetty
1 Comment
AIG: The New Math? [view article]
You've made a valid point, but I'm sure the management is aware of the math. I think it has more to do with the fact that the stock is predominantly held by Institutions & Pension Funds, who need this yield and end up supporting the stock. If AIG decides not to pay this dividend for this Quarter or eliminate for the time-being, that would result in a decrease of institutional participation in the stock - and ofcourse much lower stock price...and ofcourse the management is wear of such a move. May 09 04:09 PM