Comment Re:Google is suffering from success (Score 1) 155
I think Google's just beginning to coalesce its many projects into one service... phone and/or netbook with andriod/chromeOS running chrome and accessing gmail, google calendar, google docs, google maps with GPS-like capabilities, etc. etc. Microsoft is slowly but surely spreading its empire as well. I never would've dreamed they'd be so successful with the XBOX. They have plans for a multimedia set-top box as well. Perhaps we simply don't know the 5 to 10 year plans these companies are reaching for and their releases simply seem fragmented b/c we don't know the long term plans.
As for dividends, I'm not sure why you prize them so highly. You spend money to buy stock b/c you believe it to be a better investment than actual money in a savings or money market account, yet you'd rather get money in the form of dividends from the company stock than have the stock rise in value? Every publicly traded company has a duty to "maximize shareholder wealth." By giving out a dividend, a company is basically admitting that you could invest that money better than they could, so they're giving it to you. It's insane... especially since they assume that company stock is a good investment and you should turn around and spend that money on buying more stock... so why incur fees buying more stock instead of simply allowing your stock price to rise to reflect the cash/investments/whatever within the company? If you believe the stock isn't a better investment than you could find elsewhere, then why not simply sell your stock and collect the money from the sale?!?! Dividends often lead to trouble down the road b/c once you start paying one, people expect you to continue and will see a halt or lowering of dividends as a bad sign, thus lowering the value of the stock... so once a company begins paying them out, they have to continue forever -- through good times and bad... even when it hurts their bottom lines.
I really don't understand why you would want a dividend.... if you want a return on investment in the form of a check, then perhaps a money market fund would be better. The point of owning a stock is to own a piece of a company in the hopes that it will be successful and make your shares worth more for when you finally decide to cash out. Typically, one should invest with an intent not to sell the stock for at least 5 to 10 years -- perhaps many decades for retirement. (day traders should be shot imho) With this in mind, one would want a good company to re-invest its profits within itself to grow bigger and even more profitable over that time. If one doesn't have faith in an individual company, then probably an index fund would be best... but I digress.
Point being... a company's profits are the shareholders' profits... whether they are re-invested or distributed as dividends. If a company holds on to the money in the form of cash or equivalents, then the stock price will rise to reflect that... in which case, if you wanted cash, you could sell the stock at a higher price instead of getting a dividend... however, the company should invest the money into R&D or expansion, or some other strategy to yield even more profit down the road. You're really better off choosing to either keep the stock without the dividend or selling the stock and putting your money elsewhere where you believe you'll make money.