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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?


To: Dave B who wrote (2677)3/6/2003 5:50:27 PM
From: MeDroogies  Read Replies (1) | Respond to of 4345
 
I don't know where they pay the money from...so this may be totally off target. But consider this.
I worked for a firm that had alot of cash. They locked it up in (then relatively high yield, now very high yield) time accounts (they didn't need the cash, and it was worth it to tie it up).
Assuming HP has a similar situation (I don't know if they do...that's why I'm saying it's just a thought), wouldn't it make sense to keep the cash in a high yield account and borrow at ridiculously low rates to pay the dividends?

Just a thought, as I said it may be nowhere near the reality.



To: Dave B who wrote (2677)3/6/2003 5:52:39 PM
From: The Duke of URLĀ©  Read Replies (2) | Respond to of 4345
 
Hp has 12 plus billion, they don't need the money to pay dividends but in drafting the disclosure of use statement you throw in dividends, anyway. This precludes the objection that might be made. It is basically saying, we will use the money the way we want so any third party does not have an objection.