Why Are Technology CEOs So Reluctant to Pay Dividends?
Ravi Nagarajan submits:Few examples in stock market history more clearly illustrate the risks of buying into “hopes and dreams” than the technology bubble of the late 1990s and early 2000s. Companies with no earnings and nonsensical business plans eventually ceased to exist and are now long forgotten. However, most of the well known technology firms from 2000 continue to exist today and have tested business models that generate consistent profitability. Yet investors are so disillusioned that valuations have plummeted. This raises the question: Are technology companies now “value stocks” that should pay large dividends? The question of technology firms’ “payout problem” was the subject of an article this weekend in Barron’s. Andrew Bary makes many of the familiar points regarding the valuation of companies such as Hewlett-Packard (HPQ), Microsoft (MSFT), Intel (INTC), and other former high fliers that now trade in value territory based on earnings multiples. We recently published a favorable article regarding Microsoft making some similar points. Barron’s points out that few technology companies are paying significant dividends. Intel’s 3.5 percent payout is an exception and Microsoft also pays a modest dividend of 2.2 percent but clearly the potential for much larger dividends exists.Complete Story » seekingalpha.com |
VoodooPad 4.3 Adds Mobile Web App Capability
Ever thought you needed your own personal wiki? Flying Meat’s VoodooPad may be just what you’re looking for. A recent 4.3 update adds the ability to make your... Wiki - VoodooPad - Flying Meat - Groupware - Wiki Engines feeds.pcworld.com |
Five Things Apple iPad 2 Needs to Keep Its Edge
The iPad has been a homerun for Apple and supply can barely keep up with demand, but rival tablets are ready to take the market if Apple doesn't raise the bar with the next version of the iPad. Apple - IPad - Macintosh - Research In Motion - Companies feeds.pcworld.com |
Opera to Launch Full-Fledged Android Browser
Opera Mobile for Android will feature hardware acceleration and pinch-to-zoom functionality. It is slated to arrived within a month. feeds.pcworld.com |
Twitter Solves Its Data Formatting Challenge
Creating more than 12 terabytes of data daily, Twitter eschews XML and JSON for a little-known Google protocol. feeds.pcworld.com |