IDCC is a different breed of growth stock
Most companies achieve growth by producing more, whether it be opening additional locations or increasing production so that sales can grow. To achieve this growth the company will need large capital outlays, so they need to conserve cash. In most cases they will need to raise money through debt or even selling additional stock. As a result, very few growth companies have large cash reserves or positive cash flow from operations.
Dividend paying companies tend to be companies that have grown to cover most of their target market and are generating consistent positive cash flow, which is returned to the shareholders.
IDCC doesn't fit into common catagories for stocks. IDCC is growing. IDCC has a HUGE cash hoard. IDCC is generating significant positive cash flow. IDCC has no significant capital requirements to achieve continued growth. The growth of the overall market for products containing their IP will provide significant growth. IDCC just needs to maintain licensing at current per unit levels to achieve solid growth. When you consider that almost half the market is still unlicensed, it is not hard to imagine IDCC achieving super-fast growth. This growth can be achieved without the need for accelerating expenditures.
It boogles my mind when people express concern about IDCC's ability to grow if they pay a dividend or buy back shares. If one looks at IDCC's financials and reasonable expectations for the future, it is clear that IDCC has no cash flow worries for the foreseeable future under the current business model. Those that get caught up in labeling IDCC as a growth stock and thinking that it needs to conserve cash like a typical growth stock don't understand IDCC.
