The most successful business-owning families, however, recognize that dividends…

The most successful business-owning families, however, recognize that dividends need to be thought of as variable. That is, distributions need to reflect the business's real ability to pay and should be tied to profits. Then, when profits go up, dividends go up, but when profits go down, dividends go down. When dividends are variable, shareholders come to understand that dividends are a function of the company's success.

— from True North (Ethics, Integrity, Truth, Values)

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