IBM Message Board - Msg: 6354813

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IBM

IBM 297.59

+2.5%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: saju chacko who wrote (4215)	11/9/1998 11:51:00 PM
From: john dodson	Read Replies (1) of 8218

How does buying back stock provide cash for dividend payouts? Are you saying that the theoretical profit big blue would earn on shares bought back could be used to fund a dividend? Dunno if that's possible or not. Even if it worked to a tee, it would only provide a temporary cash source for dividend payments. When it expired, then what -- drop the dividend back to original levels? BTW, it wasn't very many days ago that IBM announced an additional 3.5 billion in share buybacks on top of the billions they're already spending. Re: IMO, IBM should buyback another 1 billion dollars of stock and then once that objective is completed, raise the dividend by 25%. if after all of this the stock price is around 190 to 210, the stock should be split 3 for 1. that way the dividend payout will come from the capital gains of the bot back stock. -John

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next