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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DavesM who wrote (205164)	11/28/2001 9:56:41 AM
From: rich4eagle	Read Replies (1) \| Respond to of 769670

Dave you said......... <<<<<<<<<<<<<GE does indeed pay a dividend. I think that the idea that dividends dilute stock price was due to the "this time its different - pre bubble pop" analysis. Dividends do sometimes make sense. First of all, they tend to provide a floor (and some stability) for a company's stock price. Second, not all stockholders are required to pay taxes on their dividends (but some long term investors require dividends of a stock before purchasing). Third, if a company has a lot of cash, they may not want to just buy other companies (just because they have the cash), that are outside their area of competence - usually not a good idea. Fourth, if a company occupies a dominant market position, it often runs into regulatory problems, trying to buy out what little competition there may be in their market, or use the money to "buy" a dominant position in another market. Finally, a few years ago, cash rich companies often had another problem - Corporate Raiders. IMO there were a host of reason why Microsoft was not bait for the raiders of 15 years ago.>>>>>>>>>>>>>>>>>>>>>>> Nice post but it doesn't answer the question as to whether they taxes on this distribution prior. And yes all stockholders are required to pay taxes on dividends unless they are sheltered in some form on retirement account and at some time these become taxable as well. So, you are stating something that I agree with already mostly, but missed the main issue. IE this stemmed from the idea that corporations should be tax free which is ludicrous and that dividends are taxed twice which I have questioned.