Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
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.