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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (4977)	1/16/2003 5:24:09 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 25522

interesting MSFT news: let's play with these numbers some: Dividend (pre-split) = 0.16 Dividend yield = 0.16/55 = 0.3% $1.93 = guidance for 12M EPS YE 6/03 (not including option costs) Dividend yield if Microsoft returned all earnings to shareholders via dividend = 1.93/55 = 3.5% 4.1% = average dividend yield, S&P500, 1946-2000. Before then, the dividend yield was even higher. Data from clev.frb.org So.......if the company with the most cash and the best cash flow picture, uses all their earnings for dividends, they still can't match the market's LT historical dividend average. Which leads to the conclusion that a trend toward companies' giving dividends, and investors paying more attention to dividends when buying stocks, cannot help tech stocks, because tech companies (even the strongest of the strong) can't afford meaningful dividends. At current stock prices, that is.