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To: Bob who wrote (6897)	1/11/2003 1:16:25 AM
From: milesofstyles	Read Replies (1) \| Respond to of 10157

i would probably disagree. that paragraph just looks horribly wrong to me. from what i understand, corporations are encouraged to retain profits to further grow the company by use in r and d and new product development. only until the reinvestment of profit in the company no longer justifies the reward of such growth should a dividend even be considered to be paid out. taxation of dividends has not and never will be a consideration, imo. ie, if the company has x dollars of profit to reinvest in itself, has new product A, they are to justify if the new product will generate enough return to warrant the investment required. when the new product is not justified, then the company can say, "maybe we should offer a dividend". this is often the case in late cycle growth of companies. i just have to wonder, when someone like oracle sez, "maybe we need to offer a dividend", what they are saying about the future growth of their company or tech in general...dividends should do wonders for capital spending too eh? now that some of that profit has to be shelled out to shareholders instead of internal use. also, if companies "seek to finance their debt", should they even be considering dividends in the first place? i would think that profit should be used to pay down its debt... "financing their operations with equity"...company has 10m shares outstanding, finance with equity by issueing 5m shares and has a dollar dividend. the effect of that is a smaller dividend per share, isn't it now that 15m shares are tapping the same amount in profit? thats a benefit that should be noted regarding dividends? additionally, 370b in debt so joe six pack can collect $100-140? hardly seems worth the cost to me. milesov