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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 267.80+11.8%Nov 10 3:59 PM EST

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To: Art Bechhoefer who wrote (4406)4/30/2020 7:00:13 PM
From: SiliconAlley  Read Replies (1) of 4826
 
If earnings growth were approximately the same in both companies, or at least if growth in revenues from quarter to quarter is similar, then the difference between the two is the dividend. That is, if earnings growth is similar, then when you add the dividend, the return on investment in WDC will be higher.

Actually, no, because of something called ex-dividend, which eliminates this "bonus." One could argue that the ROI will actually be lower, if you invest your dividend at a lower rate than WDC can invest the funds. I applaud the new CEO for this bold move of suspending the dividend, which he previously signaled a few weeks ago. No surprises today.
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