I am sorry if I am wrong.
Firstly dividend paying company is categorized as good company and also regarded as company with strong cash flows….agreed.
MPS has good cash flows and also paying healthy dividend payout ratio of 60% .
I have a bit of confusion that though paying dividend is a good policy, but seeing the fact that MPS has still more mileage to go in terms of market share and as well as grow both organic and inorganic ( it raised money recently for acquistions ).
I would like to know whether to pay such high dividend still in nascent stage and miles to go ahead, is it not advisable to hold back the dividend payout or pay dividend in more calibrated fashion and invest more money on technology up-gradation and acquisition to capture more market share.
Agree that management don’t want to overpay for the acquisition but seeing to the stickiness in the business lost of market share risk could be even more detrimental for the company.
Just my thoughts and may be wrong.
Disc : Invested
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