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To: Joan Osland Graffius who wrote (140200)12/23/2001 7:21:59 PM
From: Don Lloyd  Respond to of 436258
 
Joan -

...You must accept the fact that there are people on this earth who want or need some corporate profits to be returned to the shareholder, a.k.a. widows and orphan stocks.

In an imaginary world where stock prices bore some relationship to fundamentals, the retained dividends would make up for their non-payment by increasing the market stock price, and the extra value could be sold off in stock just like your example, to make up for no dividend.

Thanks for your replies, we've probably beaten this to death. -g-

Regards, Don