With markets in a state of upheaval, especially in the United States, investors are once again discovering that they do hold some power of censure over the groups in which they hold stock. Big companies such as AT&T are finding that they may have miscalculated if they think they can slash dividends without eroding investor confidence.

With Wall Street in bear territory, many investors are going to be demanding more in dividends, not less, to help compensate for the loss of capital gains. That was clearly the message towards the end of the week, when AT&T took a hit of more than 10 per cent in one session.

With growth slowing even for the most stellar of high-tech companies, there is a feeling that firms which have been paying little or no dividend to shareholders, will have to adjust their strategy.

With their stock value falling fast, many may well look at increasing dividends as a way to hold their investors.

Dominic Coyle can be contacted at dcoyle@irish-times.ie