Ideas in this flowchart

• Debate whether paying dividends enhances a company's value
• Do dividends add value to a company's stock?
• Regular dividends may curtail financial flexibility and reduce debt capacity
• Dividends may signal that the company lacks attractive growth opportunities for its excess cash
• Dividends can make a company's stock less volatile
• Standard & Poor's data provides evidence about dividend-paying stocks
• Dividend-paying stocks in the S&P 500 typically outperform nonpaying stocks
• Companies should carefully consider the consequences before beginning regular dividend payments
• Divide the class into two teams to debate whether dividends add value to a company's stock
• The activity involves interpersonal and information skills