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To: Bob Rudd who wrote (14334)4/17/2002 3:41:08 PM
From: Amit Ghate  Read Replies (3) | Respond to of 78702
 
Actually, companies can reduce the impact of double taxation by doing stock buy backs, which at least result in the individual paying taxes at his capital gains rate, rather than as ordinary income. Unfortunately, tracing the record of stock buybacks is much more difficult than looking at a simple dividend payout record.

As to increasing debt, to me it's a separate issue, but perhaps some companies do leverage in order to increase dividend yield as you suggest.

Best Regards,

Amit

PS I'm in CPAK from a month ago on the same reasoning as Paul mentioned.