2014-02-05

Financial Media in Action

From the Market Ticker: Fox Business Segment: Interview Today

Companies that borrow money at low interest rates to repurchase stock and pay dividends are not increasing their ability to repay debt. They are consuming their capital. In the future, they will be unable to borrow at cheap rates and they will either have to slow their dividend increases or issue equity in order to replenish capital. There is no free lunch.

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