Intel Corp (INTC)

[Tenchu]

Beamer,

What if Intel instead puts those dividend dollars into stock buyback? That would also return value to the stockholder, no?

That really depends on the stock price, especially price-to-book ratio. Besides, dividends are more steady and easily accounted for. The effects of stock buyback aren't as clear-cut.

I think it's clear that as taxes on dividends rise, the incentive to give out dividends will fall as will the incentive to invest in stocks with good dividend yield such as INTC. There are plenty of investors on this thread who would hate to see that happen.

What are the upsides to this for INTC? Probably not much, unless you're of the opinion that this is good public policy and that the resulting rising tide will lift all boats.

Tenchu