re: #796 Dewd

When shareholder payouts increase, that stock becomes more valuable and when more stock is purchased that is in fact an investment in the company.

“More stock is purchased.” From whom? Existing shareholders? Or by share dilution? The stock price going up does not in itself provide any further resources to a company.

I don’t think you have a very firm grasp of corporate financial strategy.

If your company has money in the bank, it can do several things.

It can buy more equipment, upgrade existing facilities, spend on R&D etc. This is conventionally called “reinvestment”.

It can also pay dividends to shareholders. This is conventionally not called “reinvestment”, because it isn’t.

It can do other things (e.g., sit on the cash, which is what companies seem to be doing at the moment).