SHOULD corporate entities that earn massive profits be forced to pay dividends to its stockholders? The question has been a subject of debate. While the boards of directors vehemently refuse to bow to such a suggestion, investors, particularly the small shareholders, clamour for a payout.
In numerous annual general meetings (AGMs), small investors are seen to group together and refuse to approve the accounts where companies do not remunerate them. They have to be pacified with “gifts and giveaways” that are as petty as a few kilos of sugar if it’s a sugar company or a shalwar-kameez suit in case of a textile company.
Gold glittered in 2020 with the best return among investment avenues.
The price of a tola of yellow metal at the start of 2020 was Rs88,100. It climbed to Rs113,700 per tola by the last day of the year, providing a return of 29 per cent. It beat the best return of 15.8pc produced in 2019. The price of gold followed the price of the precious metal in the world market where it increased 25pc to $1,894 an ounce, from $1,561, during the year. It was spurred by the massive buying by investors who had fears about the fallout of Covid-19 on the economy. Investors thus ran for cover towards the safe haven of gold. Gold is also the investment of choice for it continues to remain out of the reach of the Federal Board of Revenue (FBR).