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Technology Stocks : Internet Analysis - Discussion -- Ignore unavailable to you. Want to Upgrade?


To: Will Hou who wrote (152)2/9/1999 6:00:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 419
 
Thanks Will,

Yes, theoretically, dividends should be included, but they are so small in the case of growth stock (LU, INTC) that they can be safely ignored. But if you want to be a purist you could consider the dividend yield as an addition to the growth rate, because the growth rate is the growth in earnings. So, a dividend could be used to buy more of the underlying stock.

If you insist on adding dividends, do it on the basis of dividend yield, and simply add it to the growth rate. You're making a lot of assumptions about how future dividends will grow, but I don't think it makes much difference because the yields are so small.

TTFN,
CTC