John K Clark wrote:
> >A big question is whether stock dividends will be a higher
> >or lower fraction of total world income during the explosion vs. now.
>
>Stock dividends? We don't need no stinking stock dividends!
>Microsoft, Cisco, and nearly all the dot com's have never paid a
>dime in dividends but their stockholders aren't complaining much.
>A company should either put it's profits back into the company or
>simply use the money to buy back its own stock. I'd rather have a
>capital gain than a dividend check any day.Tax reasons.
I had stock buy-backs in mind as well (should have put "dividends"
in quotes). If simple dividends are 3% of national income, I doubt
dividends plus stock buy-backs are more than 4%. Putting "profits
back into the company" doesn't help stockholders unless it results
eventually in more "dividends" (broadly construed).
Robin Hanson rhanson@gmu.edu http://hanson.gmu.edu
Asst. Prof. Economics, George Mason University
MSN 1D3, Carow Hall, Fairfax VA 22030
703-993-2326 FAX: 703-993-2323
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