Dividends and China touts its business potential to foreign companies

It is good to have alternatives. In life that is a good saying, for it means there are options if something does not work out. It is easier to adjust. In the business world, senior management’s job after ensuring the company makes a profit to pay dividends is the allocation of capital. The allocation is a long-term project which means politicians come and go, what is best for the company?

In an article by Liz Lee of Reuters, China’s economy czar Vice Premier He Lifeng, recently met with the heads of American companies to say China is open for business. The companies included: Apple, Pfzier, Mastercard, Cargill, Eli Lilly, Medtronic, and Corning Glass. All companies with international operations.

Several global investment banks liked China’s moves with Nomura, ANZ, Citi and Morgan Stanley raising their forecasts for the country’s 2025 economic growth by 50 basis points.

The reason why the Vice Premier was able to talk to them was the annual China Development Forum was held which attracted 86 company representatives from 21 countries.

President Trump has placed 25% tariffs on imports, but the US is not the only game in town. China is the world’s second largest economy and can easily move goods around the world.

Linking to dividend paying stocks, similar to many towns and cities, states say they are open for business. If companies like the business environment, they can tolerate the political environment because profits are the end result. All profitable companies are courted by a wide range of people to encourage investment, which is why there are few cuts in that area. A profitable company has options, and with dividends you can have some to.

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

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