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Union Strikes at Perkins, Stafford - 2010
- Thread starter Theorum
- Start date
Withnail
Well-Known Forumite
Walter (show all posts) has been rather quiet since the dividend information came to light, what?Walter said:
Ben
Well-Known Forumite
Very difficult topic and inflation is now becoming a concern. Just using my own common sense (which isnt great!) id imagine that the latest set of accounts may show a profit but large companies like Perkins, Caterpillar, Alstom will know what is in their order books moving forwards and will set their budgets accordingly. The latest set of accounts may be using income from orders made before the recession even kicked in.
Shareholder value is a separate topic but if no returns are given to shareholders then the city will not look favourably and stock brokers will recommend better performing shares to their clients resulting in less investment. Millions of pounds could be wiped off a companies worth within a few days endangering (killing) more jobs.
My own employers have not provided a pay rise for 3 years but I work for a good company and Ive seen how our clients are struggling, gone out of business or directors have even faced personal bankruptcy trying to look after their staff. Ive accepted that I'm happy where im working and the country needs to take its medicine as it a wounded animal right now.
Here's to growing the stafford economy, creating more jobs and working hard to ensure Stafford remains the pride of Staffordshire.
Shareholder value is a separate topic but if no returns are given to shareholders then the city will not look favourably and stock brokers will recommend better performing shares to their clients resulting in less investment. Millions of pounds could be wiped off a companies worth within a few days endangering (killing) more jobs.
My own employers have not provided a pay rise for 3 years but I work for a good company and Ive seen how our clients are struggling, gone out of business or directors have even faced personal bankruptcy trying to look after their staff. Ive accepted that I'm happy where im working and the country needs to take its medicine as it a wounded animal right now.
Here's to growing the stafford economy, creating more jobs and working hard to ensure Stafford remains the pride of Staffordshire.
OK, dividends. I thought most employees were shareholders as a result of Caterpillar's generous share purchase scheme (basically buy 2, get one free) so why should employees complain about the company paying dividends? They should be delighted! Other profits are needed to pay for investments like new production lines, new products and acquisitions which keep Cat ahead of the competition. Making money to reward shareholders and invest in the company's future while paying employees in line with the local market sounds like a common sense, real world approach to me.
tek-monkey
wanna see my snake?
They didn't buy the shares? Or the dividend per share isn't actually that great, because there are so many shares issued? Although if they used their bonus every year to buy shares (it being a freebie effectively) they'd have a continuous revenue stream as long as the factory is profitable.
To know if it was worth it I'd need to know cost per share and dividend paid out though, could be worthless.
To know if it was worth it I'd need to know cost per share and dividend paid out though, could be worthless.
A since Caterpillar share currently costs about $96/97 dollars and has paid a dividend of 44 cents ($0.40) per share for the last few quarters. What do you think, Withnail? The dividend news that "came to light" (it's issued publicly every quarter) is hardly earth-shattering!tek-monkey said:
tek-monkey
wanna see my snake?
So if the dividends are so crap, yet the profits so good, where are they going? How much cash is Cat sitting on? And more to the point, why? If you have shareholders then they are your owners, I thought the profit went to them via a dividend? If the profit goes elsewhere, what point the shares?
Of course if you'd purchased shares this time last year you'd have made about 70% profit on them simply through price rises.
EDIT: More in fact, as it was B2GOF for employees so you'd have more than doubled your money.
Of course if you'd purchased shares this time last year you'd have made about 70% profit on them simply through price rises.
EDIT: More in fact, as it was B2GOF for employees so you'd have more than doubled your money.
shoes
Well-Known Forumite
Presumably you can buy shares in caterpillar manufacturing and the profits are recorded, on the whole, by another company perhaps caterpillar elite shareholder ltd 
(an example of how it might work, I have no idea how caterpillar is set up, who owns which shares of what etc. - there is NO FACT in the above - just a posibility).
Also I would imagine that caterpillar has millions of shares issued these days, so each one will get 1/total shares of the net profit allocated for dividends.
I have a small number of shares in a well known company which pay less than that, and they consistently announce year on year increases in profit. Their value has increased 10 times (at least) what I have been paid in dividends.
(an example of how it might work, I have no idea how caterpillar is set up, who owns which shares of what etc. - there is NO FACT in the above - just a posibility).
Also I would imagine that caterpillar has millions of shares issued these days, so each one will get 1/total shares of the net profit allocated for dividends.
I have a small number of shares in a well known company which pay less than that, and they consistently announce year on year increases in profit. Their value has increased 10 times (at least) what I have been paid in dividends.
Withnail
Well-Known Forumite
This topic started with a question about why the staff were striking and whether it was justified. I come at it from a position of sympathy for people sticking up for themselves - you come at it from an opposite position.Walter said:
I have no connection with Perkins whatsoever, i can't help but notice you have commented on this issue only.
How much of a big deal the dividend is rather depends on how many shares have been issued.
tek-monkey
wanna see my snake?
Does company value / share value = shares issued?
tek-monkey
wanna see my snake?
About £280m paid out then.
