Who would have thought...
It used to be a bad thing. Borrowing money to pay dividends...
It now makes sense... Last year Pepsi borrowed $2.75 billion USD at record low rates... so low that they will use the money to pay dividends instead of repatriating cash from overseas...
Do we need to rethink our tax system or what!
The three-year debt pays 45 basis points above similar-maturity Treasuries, the 10-year debt offers a spread of 80 basis points and the 30-year bonds yield 95 basis points above Treasuries, Bloomberg data shows
That is better than Australia, Austria, Belgium, France, New Zealand just to mention a few...
Very recently,CNN reported that the wholesale giant Costco borrowed $3.5 billion USD for the same purpose. Other companies are taking note and following.
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