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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.810.0%Dec 26 9:30 AM EST

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To: Maurice Winn who wrote (62751)4/18/2007 1:36:21 PM
From: Art Bechhoefer  Read Replies (2) of 197036
 
Maurice, your suggestion that QCOM pay dividends in the form of shares is tantamount to QCOM buying up shares first, and then distributing them. I don't see much value in such an exercise. Better to buy the shares and retire them, reducing the total number of outstanding shares and increasing earnings per share on the remaining shares.

The company might also consider a dividend reinvestment plan, whereby shareholders can direct some or all of their dividends be delivered in the form of additional shares. This would, in effect, entail periodic purchases of QCOM shares by the company in order to have shares available for dividend reinvestment. For those who expect to buy more shares, dividend reinvestment eliminates the cost of commissions on conventional purchases through a broker. The disadvantage is that the shares are purchased at a time set by the company, and not by the shareholder.

Art
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