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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (110125)	1/2/2002 4:15:50 PM
From: pyslent	Read Replies (2) \| Respond to of 152472

"As i pointed out, qcom needs to earn more than 2.60 per share IMMEDIATELY if it is to pay the average S&P 500 dividend at the average payout ratio." That would be true for a non-growth company (matching the expected avg yield from a money market fund). The reason that current QCOM investors are willing to pay a premium for the shares relative to its earning is because they EXPECT to be paid a $5/sh dividend in the near future. or at least have $5/sh company profits with which to generate good ROI for shareholders (whether they pay out the dividend is irrelevant as long as shareholders are happy in the manner by which the earnings are used). Mucho Maas is correct in pointing out that it is vitally important for QCOM investors to understand what expectations are priced into the stock. If QCOM fails to make $5/sh within 3-4 years, IMO, the stock price will suffer. Of course, while Mucho seems to think that that is a ridiculous earnings target, I would not be surprised to exceed that substantially. Pyslent

To: Wyätt Gwyön who wrote (110125)	1/3/2002 12:07:12 AM
From: JGoren	Read Replies (2) \| Respond to of 152472

there is nothing "wrong" with paying a dividend. i have believed for some period of time that there will be increasing pressure from baby boomers for tech companies to pay dividends. they aren't going to want to sell their shares to have income to retire on. moreover, as companies reach a more mature stage, where their growth rate recedes, they should have some payout. the issue is not about paying out the average S&P dividend rate. internal growth, of course, comes first; and qcom has not reached the status where it cannot use its cash profitably to generate growth in cdma and internal growth. however, if it appears that qcom is not using its investments wisely, the pressure for dividends will become enormous. is there anyone out there who would not prefer dividends over squandered investments?