Thursday, January 19, 2006

Washington Mutual (NYSE:WM) does it right

Washington Mutual Inc (NYSE:WM) did it right. They recently announced Q4 and annual results and then declared a dividend. Perhaps I am too conservative but classic financial analysis teaches that dividends are paid from profits. Too many companies declare dividends before they release earnings reports. Dividend declarations before profits calculation is the cart before the donkey of corporate governance.