The Wrong Way to Pay Dividends

In a preliminary prospectus filed with the Securities and Exchange Commission yesterday, Amgen says it plans to sell bonds, the proceeds of which could potentially be used for: Working capital and capital expenditures Debt service requirements and repayment of outstanding indebtedness Other business initiatives, including acquisitions and licensing activities Repurchases of shares Payment of quarterly dividends The first three make perfect sense. Grabbing cash while interest rates on corporate bonds are low to make major purchases is what smart companies do.... Read more