The writer recently picked up a book from the library called Corporate Catalyst by Tony Griffiths published by John Wiley 2012. Mr. Griffiths spent most of his corporate life trying to bring back companies with great assets but lousy performance (almost bankrupt or heading that way). For dividend paying companies – there will always be restructuring but very few do or die situations. The restructuring business involves getting back to basics or focusing, selling where the company has higher margins (can make more money) and at Mr. Griffiths’ level often it means convincing the Board they have a problem and need to do something to prepare for the coming actions.
The reason restructuring affects dividend paying companies less is dividend paying companies are in a fortunate position to already have the high margin business because of barriers to entry for the competition. While there is competition for everything under the sun and clouds, some companies have advantages which allowing for reasonable management, will continue for a long time. The advantages can be government regulation, location, distribution, cost of entry into the business or size of the company (ie GE) and others. Within the company, there is and always will be internal restructuring to create efficienies and the effect of internal politics but to the outside world, the companies continue to make money and pay dividends. Those are the companies you need to invest in, for you to continually gain income.

There are always more questions than answers, till the next time – to raising questions.