Many posts have related the dividend decision at least in part to industry specifics or company specifics. These conditions can lead to investor expectations, and expectations can powerfully motivate management decisions. The dividend strategy is part of the larger process of trying to keep the shareholders satisfied. A good thing for job security... Clearly, senior managers need to be strategic, but still be aware of the short-term consequences. However, decisions that may look good in the short-term may be quite damaging to the long-term. And digging in for the long-term doesn't always make this quarter's financial look so rosy. So, does management's time horizon and that of its shareholders need to be the same? Would you act the same way if your Board of Directors were all very long-term investors (say a pension fund) or very short-term investors (like an average Wall Street type)