In the case of a company higher retained earnings will result in a lower dividend paid out to shareholders.

Today's final dividend of 2.2p means Premier will have paid a total dividend of 6.5p a share in 2007, down from 12p a share a year ago.

It's changing the number of shares outstanding, so the value of the company declines by the same amount; it has to, as if they had just paid a dividend.