Savings Account & MMA Rates
CD (Certificate of Deposit) RatesCorporate America needs a quick refresher course in Capitalism 101.
Here it is.
Companies are not supposed to hoard large sums of cash.
The shareholders who own those companies expect them to do one of two things with the profits they earn:
- Spend excess cash to grow the business and make our shares more valuable.
- Or raise the dividend and give it to us.
Right now, far too many companies are doing neither.
According to Standard & Poors, non-financial companies in the S&P 500 are just sitting on a record $837 billion in cash.
The latest unemployment report out today says private employers added a paltry 71,000 jobs in July, so they’re certainly not hiring to grow their businesses.
Nor are we seeing a spate of special dividends or increases in regular dividends.
So here’s my message to all of the cash-hoarding companies in which I own shares: If you can’t put that money to work, then give it to me.
It’s time for you, and all of the nation’s corporate leaders, to poop or get off the pot.
You’re not investing in your companies’ future and the cash you’re sitting on is earning shareholders like me precious little interest – something every saver knows from painful experience.
What you’re doing is bad for your companies, bad for your shareholders and bad for the economy.
According to a recent story in USAToday, all of that cash is enough to pay 2.4 million people $70,000 a year, for the next five years.
Earn your big paychecks and figure out what to do.
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