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Politics : Ask Michael Burke

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To: Mike M2 who wrote (66988)8/30/1999 1:13:00 PM
From: Freedom Fighter   of 132070
 
Mike,

I hate to defend the bulls even a little but I think that a small part of the declining dividend yield is related to share repurchases using free cash. I realize that a lot of repurchases are just related to exercised options and are debt financed, but there are some companies that have wisely chosen to buy back shares instead of paying dividends when opportunities arise. It's more tax efficient for shareholders than an after tax dividend reinvestment. I agree with you except in magnitude. Maybe 50%-60%?

Wayne
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