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Technology Stocks : Dell Technologies Inc.
DELL 140.77+1.4%Nov 12 3:59 PM EST

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To: Geoff Nunn who wrote (83665)12/4/1998 7:56:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
Geoff, I agree with all you said, but unless I missed the point in a previous post, I think the majorthe problem with DRIPS is its implicit capital rationing underpinnings. When a company pays a dividend it means that it can find no better use for the cash. That is, within the spectrum of possible investments, returning cash to shareholders appears to be the best course. Perversely, this is pretty much what a share buyback program does, but investors get very excited about it. Of course, the shareholders take the buyback as a sign that the stock is undervalued.

If you made this point in a previous post, my apologies.

TTFN,
CTC
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