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Technology Stocks : WDC/Sandisk Corporation
WDC 165.70-2.5%3:07 PM EST

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To: Apollo who wrote (12119)6/20/2000 6:55:00 PM
From: Art Bechhoefer  Read Replies (1) of 60323
 
Here's my view on what will rescue SNDK and QCOM -- dividends. QCOM, which is turning into an idea factory whose earnings come mainly from royalties, is closer to paying a dividend than SNDK. SNDK, perhaps after the new plant starts operating, and after a steadier stream of royalties comes in, following the final resolution of the Lexar suit, may also be in a position to declare a small dividend.

To understand why paying a regular dividend is important, look at Intel, which, after declaring its first dividend around 1991, became the darling of pension funds, heretofore excluded because many of these funds have bylaws restricting investments to stocks that pay dividends.

Art
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