Dividends
“ Today ’ s fast-swimming minnows grow up to become tomorrow ’ s languorous carp . When today ’ s technology whizz kids get to that stage , they will need to decide what to do with their cash ”
Steve Clayton Manager on the HL Select fund range
years in which its share price did nothing but tread water , and another when it became the biggest company on the planet . Remember , correlation does not equal causation . Meanwhile , UK-listed IT infrastructure provider Softcat has increased its ordinary dividend in every year since its IPO in November 2015 . Many tech companies have highly scalable business models that can generate equally scalable revenues . This can then support dividend payments as companies mature . Or as Clayton puts it : “ Today ’ s fast-swimming minnows grow up to become tomorrow ’ s languorous carp . When today ’ s technology whizz kids get to that stage , they will need to decide what to do with their cash .”
Issue 81 - February 2022 / 17 /