Some folks believe if a fast-growing company pays out a dividend, it will signal to investors that the stock is no longer a growth stock, and it will lose its growth premium. Arguably, however, some fast-growing companies simply generate too much cash to hoard it all -- companies like Google (GOOGL 10.22%).
What should Google do with its idle cash? Fool contributor Daniel Sparks thinks Google should return some of it to shareholders. He explains that some businesses simply deserve a premium valuation because they are excellent businesses. Additionally, he gives investors three concrete reasons why Google should pay a dividend.
