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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Dexter Lives On who wrote (130204)	7/16/2003 3:50:17 PM
From: Art Bechhoefer	Respond to of 152472

>>the growth days are in the past<< Rob, just because a company increases its dividend doesn't necessarily mean the growth days are in the past. It can also mean: 1. Cash flow is now, and for the foreseable future, large enough to warrant an increase in the dividend. 2. Future growth will depend more on market penetration of existing product lines and less on new product development. 3. The recent dividend tax cut makes an increase in the dividend a more attractive alternative than working solely for capital gains. 4. If in fact we are at the stage where the company anticipates lower growth, then it also makes sense to keep purchasing shares, if those shares appear to be undervalued. As far as I can tell, the company has NOT stopped buying its shares. 5. What it really means is that the company no longer finds it necessary to make the kinds of strategic investments that were previously needed to open up new markets. Art

To: Dexter Lives On who wrote (130204)	7/17/2003 6:32:13 AM
From: Maurice Winn	Respond to of 152472

Rob, things are not always bipolar, with an either/or answer. QUALCOMM is in both the milking it and rapid development phases with enormous growth just kicking in. Check out the graphs for growth. I dare say you can see a trend here: 3gtoday.com QUALCOMM's research and development budgets are at all time highs. The R&D done this year will feed the product and services pipeline. With that new stuff and a huge and burgeoning market, it's obvious that growth is just getting going and the fun is just beginning. Simultaneously, the profit margins are so large that they can pay shareholders good dividends. Such a double-headed victory is hardly an "admission". "Yes, we admit it. We are making a huge amount of money. Even more than we need to keep the business booming into many new areas, so we're paying hefty dividends. Guilty as charged!" Mqurice