Re: ..smart question???
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the company is saying it cannot invest the money profitably for more than a short term note...about 2-3 % right now
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The company is only saying that they cannot invest the shareholder's money as profitably as the shareholder can (minus the dividend tax rate of course). I don't see how the short term note plays in. If I was a CFO and I thought reinvesting in my business was going to get my shareholders less return than they could get investing elsewhere, like an index fund or something, then I would pay out money in dividends instead of allocating it inefficiently.
There is nothing wrong with owning stock in a mature business that does not require capital investment if they can continue generating cash and giving it back to you.
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