Corporations need to boost dividends to save the Canadian economy
By John Shmuel, Financial Post July 6, 2012
It’s no secret that Canadian companies are sitting on record amounts of cash, a byproduct of conservative management practices that emerged following the financial crisis of 2008.
That huge cash pile could also be a savior for the Canadian economy — if only it were put to use.
A new report from David Madani, Canada economist for Capital Economics, says that even if a fraction of Canadian companies used the cash to boost dividends, there would be a significant increase in consumption in Canada.
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