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Description: Paying a dividend to shareholders is not the right use of its money, CGI Group (CGI-T 16.44 -0.05 -0.3%) chief executive Michael Roach tells BNN, as the company, which was recently crowned Canada’s biggest technology firm, builds up funds for potential acquisitions.   CGI shareholders, along with the stockholders of most publicly-traded companies, have raised their voices recently in favour of dividends as investors look for profits from high-paying dividend companies.

Source:  BNN.ca – video report

Date: Mar 15, 2013

Link:  http://watch.bnn.ca/headline/headline-march-2013/headline-march-14-2013/#clip884637 http://watch.bnn.ca/headline/headline-march-2013/headline-march-14-2013/#clip884643 http://watch.bnn.ca/headline/headline-march-2013/headline-march-14-2013/#clip884642

Questions for discussion: 

  • Summarize the highlights in this report with respect to the growth of the firm through acquisitions and the required cash to facilitate such growth.
  • Do you think the strategy is appropriate in today’s marketplace?

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