Adequate cash reserves can help fund research and development, make dividend payments, buy shares back, entice buyout offers or even acquire other firms.

FORBES: Ten Cash Per Share Kings

Hurt by falling demand for its office and hotel properties, plus pricey investments in cold storage and residential development, Crescent Real Estate Equities cut its earnings outlook for 2001 by 13% and its dividend by 32% in October.

FORBES: Shaky Dividends

John Van Vlack, the president of HLSS, said in an interview that the dividend payout was intended to be similar to those of real-estate investment trusts or business development companies, to attract similar kinds of income-seeking investors, which help keep capital costs low if the company goes back to the market for additional fundraisings.

WSJ: Ocwen's Rapid Growth Puts Spotlight on Its Practices