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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Lou S. who wrote (23421)	3/4/1999 9:12:00 PM
From: thebeach	Read Replies (2) \| Respond to of 77400

Here you go: techstocks.com

To: Lou S. who wrote (23421)	3/4/1999 9:14:00 PM
From: Adam Nash	Respond to of 77400

Paying dividends is an inefficient use of capital, due to tax laws. That is, assuming the company can invest that cash into business that provides above-average returns. - Adam

To: Lou S. who wrote (23421)	3/4/1999 9:26:00 PM
From: Doughboy	Respond to of 77400

Real Tech Companies don't pay dividends. Dividends are for the coupon cutting retirees who live off dividend income. Let'em have their slow growth AT&Ts and IBMs. Some companies like Intel pay miniscule dividends because some mutual/pension funds cannot invest in companies that don't have dividends. IMO, a dividend is just a way of saying we're not smart enough to figure out what to do to grow profits, so we're giving it back to you. Doughboy.

To: Lou S. who wrote (23421)	3/4/1999 10:32:00 PM
From: Eric	Respond to of 77400

wragrep LU had better stop paying dividends or it will become roadkill. Actually it's better to acquire companies without incurring debt. But for me it's capitol appreciation! Eric

To: Lou S. who wrote (23421)	3/4/1999 11:36:00 PM
From: JRH	Read Replies (1) \| Respond to of 77400

If CSCO is holding so much cash, Why don"t they pay any dividends ? If you look at the fundamentals of Finance, they say that if a company can make a better investment in itself than a "fair rate of return", then they should re-invest the money into the company (i.e. "Plowback") and keep the company growing. If a company's factories are only growing earnings by 8% a year (like Lucent) and a fair rate of return is 10%, then the company should pay out some of those dollars ("Payout"). So that is why Cisco doesn't pay out dividends. At least, that is what my professor (a PhD graduate of Northwestern's Kellogg School) has lead me to believe!! <vbg> Justin

To: Lou S. who wrote (23421)	3/5/1999 10:05:00 AM
From: Zoltan!	Read Replies (2) \| Respond to of 77400

>> Why don"t they pay any dividends ? Remember LU has always paid a div every quarter (just like ATT does) The answer to your question is contained in your question. LU was, as part of AT&T, a regulated utility granted a government sanctioned monopoly in return for a government regulated rate of return. The dividend remains as part of that legacy because many of LU's investors, the old utility crowd, expect it. As others have detailed, it is an inefficient use of capital but apparently LU management hasn't the leadership to end the practice w/o exacting a toll on its stock price. Premier growth companies in the tech arena rarely pay cash dividends. When was the last time richer than Croesus Microsoft paid a cash dividend? If they ever do, that's a good signal that the big growth is over.