I'm reading The Intelligent Investor, and quote:

Graham became a master at researching stocks in microscopic, almost molecular, detail. In 1925, plowing through the obscure reports filed by oil pipelines with the U.S. Interstate Commerce Commission, he learned that Northern Pipe Line Co.—then trading at $65 per share—held at least $80 per share in high-quality bonds. (He bought the stock, pestered its managers into raising the dividend, and came away with $110 per share three years later.)

I'm wondering how could someone pester the managers to raise the dividend? Why would they do that?

  • 1
    "Why would they do that?" — Who is "they"? The managers?
    – Flux
    Sep 18 at 13:40
  • The accepted answer to that linked question explains the how and why thus: "As a shareholder, he let the company's management know that he would prefer that they make higher dividend payments. The company presumably could afford this because it held so much in assets. This was one way to communicate to the market that the shares could be worth a lot more."
    – nanoman
    Sep 20 at 7:09

1 Answer 1


I'm wondering how could someone pester the managers to raise the dividend?

The easiest way to do that is by owning many shares. With enough voting power from the shares, the board of directors would take your opinions more seriously. If you are displeased with the actions of the board of directors, you could vote against the directors' reelection during the next election, and replace them with your own directors if you have enough votes.

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