Tuesday, January 12, 2010
Here is a way to take a perceptual lead over competitors. Demonstrate that your company is healthier. JP Morgan Chase never fell as far as other banks during the financial meltdown, and now it appears to be moving from strength to strength. By restoring dividends before anyone else, the company is saying it is back to normal at a time when competitors such as Citicorp are still struggling. This kind of move can differentiate a company for a long time, and there is good reason to believe that is precisely why the CEO, Jamie Dimon, is doing it. It fosters good relations with shareholders and it is a strong signal to financial analysts.