When a company announces a dividend to investors it always sounds like good news and it is (good news for the investors). But when the company is a Network Marketing company that you represent, you can pretty much assume that corporate dividends will eventually hurt your personal bottom line.
This is not a hard equation to figure out. You have two groups playing tug-o-war with the company leadership. One group (board of directors) wants to produce the highest profit for the company which can include cuts in bonus structure and price increases. The other group (distributors) wants the best bonus payout and lowest price for products.
Who do you think will usually win?
Mannatech (MTEX), Incorporated announced today that its Board of Directors declared a 12.5% increase in its regular quarterly cash dividend. The new quarterly dividend rate will be $0.09 per common share as compared to $0.08 per common share in the prior year. The next quarterly dividend is payable on Friday, April 13, 2007, to shareholders of record at the close of business on Wednesday, March 28, 2007.
Sam Caster, Chairman and CEO of Mannatech, said, "This is the third consecutive year that we have increased our dividend payment to our shareholders. The strong financial position of our company supports our continuing dividend program. Our commitment remains to continue to return value to our shareholders."
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