The companiesoffer big dividends as incentives to investors to stick with them while they make acquisitions or build up other products that will make share prices grow again.
Recently, GBI announced a program that allows publicly traded companies to offer shareholders their dividends in physical gold or silver, instead of cash.
This would allow government to capture more taxes from dividends, he says, since companies would presumably be pressured to offer more dividends since double-taxation would be avoided.