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To: Neocon who wrote (204619)11/24/2001 1:01:32 PM
From: J_F_Shepard  Read Replies (1) | Respond to of 769670
 
re:Exceptions do not invalidate the general observation.....

I think it's true that most of the hi tech sector pays little or no dividends stating that all excess money is being used for reinvestment in the company. So it would appear that stocks that pay no dividends do not usually drop but will drop if a company establishes a dividend and for some reason cuts it at a later date, eg IBM which dropped like a rock during the companies bloodbath of the early 90's and also declared a dividend cut of at least 75%.
It has taken almost 10 years for the stock to recover but the dividend remains relatively small.