The right dividend policy

Tomorrow's Business

A TIP of the hat to Greggs, which showed today it is as skilled at RNS’s as it is at pasties (almost).

What’s especially good is the way it talks about a likely upcoming special dividend.

Dividends are really important to investors, private investors in particular.

This seems like a very obvious point but newspapers and companies tend to forget. Twice today I asked CEOs what their divi was, since it was hidden on the statement.

They didn’t immediately know. How can they not know? It might be the best thing they do.

Greggs flags the special divi in a bullet point at the top of the RNS. Then further down the finance director – the man in charge of the money – is given space to talk about cash-flow and cash reserves.

So investors and hacks get a grown up view of what the company needs in terms of its balance sheet, while others get to bang on about vegan sausage rolls.

You get the feeling you are receiving the same message the City analysts get in their briefings.

The flak involved in writing this did it exactly right, I reckon.

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