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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (60708)	8/6/2002 9:28:40 PM
From: Ira Player	Read Replies (1) \| Respond to of 77400

then an initiation of cash dividends Never dividends, in my opinion. If a company cannot find a productive use for the capital and decide to return it to the shareholders, dividends are a very tax unfriendly way to do it. (Double taxed.) I'd rather, in all cases, see a buy back program. Investors that decide to incur a taxable event can sell as they need the capital and take the capital gains hit. Those that do not sell get there "dividend" by owning a little bigger piece of the remaining pie. If a company (not Cisco, lol)is "yielding" 5% with dividends, they can retire 5% of the stock each year rather than paying the dividend. This reduces the stock outstanding, increasing EPS by 5.25%, assuming all other things remain equal. The holders gain this in stock price. Just my opinion... Ira