Belgacom Pays Out Big Dividends: Share Price Rise Comparison with Google

Belgacom Pays Out Big Dividends: A Comparison

Belgacom is a telecommunications company that pays out significant dividends to its shareholders. On the other hand, Google does not pay out any dividends to its investors. The question arises: Should Belgacom's share price rise faster or slower than the share price of Google? And which one would be a better option for stock options?

Should Belgacom's Share Price Rise Faster than Google's?

Answer:

Yes, Belgacom's share price should rise faster than Google because companies that pay dividends are seen as financially stable and are popular among investors.

Explanation:

Dividends are issued from a company's retained earnings. Therefore, only companies that are profitable in a big way can issue dividends consistently. Companies that offer dividends consistently are perceived by investors as financially stable and become attractive investments. When more investors buy stocks because of the dividends Belgacom pays, the stock price increases. Paying dividends is a great way for a company to foster goodwill among shareholders, drive stock, and communicate financial stability. Dividends can be in the form of shares of stock, property, or cash payments. Therefore, based on these points, it would be better to have Belgacom stock options.

Share Price Rise Comparison

Answer:

Yes, the share price of Belgacom should rise faster than that of Google because it pays out big dividends, attracting higher demand and proving that the company is generating more profit.

Explanation:

When a corporation earns a profit or surplus, it can pay a proportion of the profit as a dividend to shareholders. A company like Belgacom that pays out big dividends is a stable company with good credit. This incentive attracts more investors who see prospects for profits in the future. More investors suggest an increase in demand, which will ultimately hike the share price according to the total amount of shares available. The reason Google does not currently pay a dividend is that it wishes to continue its expansion into new ventures and would rather reinvest those profits back into the business. The Belgacom option is preferable if you are an investor, while the Google option is a better option for business owners.