There clearly have been examples of excessive dividends, particularly when poor performance or finances are taken into account, symptomatic of a culture of prioritising profit over duties to regulators and customers. However, dividends for other companies have been in line with regulatory expectations. Dividends are controversial, particularly when total shareholder returns and debt are taken into account. Part of the problem is the lack of clarity about whether dividends have truly been value for money, particularly since they eventually take more money out of a system than they put in. A system based more on higher bills and limited debt may be better. It is also not clear whether Ofwat’s historic expected dividend returns have been set at a sustainable level, although many investors now think they are too low. We must ensure that sufficient safeguards are in place to prevent egregious dividend payments, ensure that services for customers and the environment take priority and to properly link dividend levels to company performance. At the same time, investors need to see stable but modest long-term returns. (Conclusion, Paragraph 31)