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Technology Stocks : Compaq
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To: Lynn who wrote (27923)6/21/1998 12:43:00 PM
From: Stevefoder  Read Replies (2) of 97611
 
Some institutions can not invest in a company that does not pay dividends. Now they can buy CPQ.

In addition, starting out a dividend low and then increasing the dividend every year helps the marketability of the stock to some institutions. Some institutions have their computer programs set up to look for companies that pay a regular dividend and also look for companies that have increased the dividend every year. Meeting that criteria increases the chance that the institution will buy CPQ.

Steve S.
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