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  #4  
Old 09-01-2003, 11:16 AM
Paul
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Default Re: New Tax Law induces increased dividend payout

"Harlan Lunsford" <hlunsfordnoway[at]bellsouth.net> wrote

- quote -

> btw, if your ears were burning Sunday night, it's cause
> Helen and I were talking about you.


Who, me? Lordy, Lordy.

--
Paul A. Thomas, CPA
taxman[at]negia.net

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  #3  
Old 08-29-2003, 05:41 AM
Harlan Lunsford
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Default Re: New Tax Law induces increased dividend payout

Frederick Jorden wrote:
- quote -

> Paul A. Thomas wrote:
> > "Frederick Jorden" <fejcpa[at]erols.com> wrote


> > > http://home.hamptonroads.com/stories...638&ran=174267
> > > > > The above article reports increased dividend pay outs
> > > induced by the new tax law. Perhaps this will increase the
> > > market capitalization for a bird in the hand. I think this
> > > is a long run positive impact of this law.


> > Fiscally, wouldn't it be a bad move to pay out the company's
> > cash reserves as dividends, then borrow money to expand or
> > for other operating needs? Were companies just piling up
> > cash for no reason at all?


> At one point the payment of dividends was taken as a sign
> that a particular company had run out of investment
> opportunities and earning may grow at a reduced rate in the
> future. In reality there is an optimum dividend pay out for
> each company. If a company will never pay out a dividend,
> why buy the stock?


Why indeed? Over the years I've owned several stocks that
never ever paid a dividend, nor could they afford it. And
I made money on them, viz. capital gains. (we won't speak
of capital losses! lol)

Cheer$,
Harlan Lunsford, EA in LA
who learned investing at Loyola, Baltimore.

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  #2  
Old 08-29-2003, 05:22 AM
Paul
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Default Re: New Tax Law induces increased dividend payout

"Frederick Jorden" <fejcpa[at]erols.com> wrote

- quote -

> At one point the payment of dividends was taken as a sign
> that a particular company had run out of investment
> opportunities and earning may grow at a reduced rate in the
> future. In reality there is an optimum dividend pay out for
> each company. If a company will never pay out a dividend,
> why buy the stock?


One hopes, increased stock price.

I would rather have an investment in a company without debt
than one that pays out $4 in dividends and then goes
$2,500,000 in debt to build another store.

--
Paul A. Thomas, CPA
taxman[at]negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
  #1  
Old 08-25-2003, 12:10 PM
Paul A. Thomas
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Posts: n/a
Default Re: New Tax Law induces increased dividend payout

"Frederick Jorden" <fejcpa[at]erols.com> wrote

- quote -

> http://home.hamptonroads.com/stories...638&ran=174267
> The above article reports increased dividend pay outs
> induced by the new tax law. Perhaps this will increase the
> market capitalization for a bird in the hand. I think this
> is a long run positive impact of this law.


Fiscally, wouldn't it be a bad move to pay out the company's
cash reserves as dividends, then borrow money to expand or
for other operating needs? Were companies just piling up
cash for no reason at all?

--

Paul A. Thomas, CPA
taxman[at]negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 
Old 08-25-2003, 11:31 AM
Dave Woods, EA
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Default Re: New Tax Law induces increased dividend payout

"Frederick Jorden" <fejcpa[at]erols.com> wrote:

- quote -

> http://home.hamptonroads.com/stories...638&ran=174267
> The above article reports increased dividend pay outs
> induced by the new tax law. Perhaps this will increase the
> market capitalization for a bird in the hand. I think this
> is a long run positive impact of this law.


And notice the silence about it coming from all of the
Democratic candidates for President........I can hear a
cricket.....

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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  #-1  
Old 08-22-2003, 09:43 PM
Frederick Jorden
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Posts: n/a
Default New Tax Law induces increased dividend payout

http://home.hamptonroads.com/stories...638&ran=174267

The above article reports increased dividend pay outs
induced by the new tax law. Perhaps this will increase the
market capitalization for a bird in the hand. I think this
is a long run positive impact of this law.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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