How important are dividends to you?.There seems to be a growing trend for companies I hold, or have held, to think an investor should be happy with capital growth and ignore the need to distribute some of the profits as dividend.
I would prefer to receive a fully franked dividend and decide for myself if I wanted to reinvest it in the company or another company of my choice. There is also the need for "petty cash" to be taken into consideration. I liked the old Coles scheme of opting for reinvestment (or not). That choice is no longer available.
I sold my ARQ shares because I came to the conclusion that they would continue to use profits in a continuous search for a bigger and better oil strike which may or may not eventuate before the company is worthless. In the meantime the directors are highly paid to enjoy the thrill of the search.
I hold a few that don't pay dividends but I hold in the hope that they are developing companies that I would expect to pay dividends in the near fruture when they have produced income streams. eg. AGM, AOE and LYC.
I hold others that are prospective and I do not expect them to get to the dividend point while I hold and I will sell them when they reach the goal I have set for them. eg. ADI,TAS,FNT and AUT.
I believe all companies should have in mind the goal of a dividend supporting income stream.