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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 268.780.0%3:32 PM EST
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To: Proud_Infidel who wrote (4977)1/16/2003 5:24:09 PM
From: Jacob Snyder  Read Replies (1) of 25522
 
interesting MSFT news:

let's play with these numbers some:

Dividend (pre-split) = 0.16

Dividend yield = 0.16/55 = 0.3%

$1.93 = guidance for 12M EPS YE 6/03 (not including option costs)

Dividend yield if Microsoft returned all earnings to shareholders via dividend =
1.93/55 =
3.5%

4.1% = average dividend yield, S&P500, 1946-2000. Before then, the dividend yield was even higher.
Data from clev.frb.org

So.......if the company with the most cash and the best cash flow picture, uses all their earnings for dividends, they still can't match the market's LT historical dividend average.

Which leads to the conclusion that a trend toward companies' giving dividends, and investors paying more attention to dividends when buying stocks, cannot help tech stocks, because tech companies (even the strongest of the strong) can't afford meaningful dividends. At current stock prices, that is.
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