Indeed ... although pension funds have spread the risk in the last 30 years thereby reducing their UK stock holdings it's worth remembering that worldwide pension funds hold about 40% of all stock .... so a large percentage those evil 'shareholders' creaming off their dividends are in reality using it to pay our pensions.
K
That is true but I predict if you let one fail the behaviour will alter.
I'm not so sure that is the case, too much of the corporate financial success measures (hence resultant management bonuses and dividend policies) are geared to maintain higher share prices, which large dividend pay outs help support..
You would have to change completely the corporate and investor reward structure which may lead to share prices fall on lower dividend returns, if profits fall as a result of increased investment and a higher cost base to fix the real issues and replace the old water infrastructure. Lower returns often result in lower share prices is something the markets don't always appreciate. The dividends also allow the pension funds to fund much of their day to day payment of their pensions.
