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Re: Knowledge is King post# 39274

Thursday, 03/30/2006 4:03:25 PM

Thursday, March 30, 2006 4:03:25 PM

Post# of 173961
Stock dividends are one of the worst uses of company stock, imho. Are you more apt to dump those shares once you get them? Not unless you get the right price....

Its my opinion that management should let the stock price take care of itself and then they will have plenty of supply available, if thats what they want. I'm sure some will see the 20% dividend as an easy and quick payoff, but once the stock trades ex-dividend, much of that gain is wiped out.

Another problem is that the company gets none of the capital from this sale of stock and thus the fd share count rises by 20% without much to show for it.
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