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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 73.99

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3:59 PM EST

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To: Lou S. who wrote (23421)	3/5/1999 10:05:00 AM
From: Zoltan!	Read Replies (2) of 77400

>> Why don"t they pay any dividends ? Remember LU has always paid a div every quarter (just like ATT does) The answer to your question is contained in your question. LU was, as part of AT&T, a regulated utility granted a government sanctioned monopoly in return for a government regulated rate of return. The dividend remains as part of that legacy because many of LU's investors, the old utility crowd, expect it. As others have detailed, it is an inefficient use of capital but apparently LU management hasn't the leadership to end the practice w/o exacting a toll on its stock price. Premier growth companies in the tech arena rarely pay cash dividends. When was the last time richer than Croesus Microsoft paid a cash dividend? If they ever do, that's a good signal that the big growth is over.

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