Re:Steve Ballmer's Microsoft
by 1123581321 on Tuesday May 15, 2012 @09:18PM
(#3979869)
Buyers will only bid up if they expect the dividends to increase without compromising the ability of the company to pay further dividends, or if the dividend is paid out with an asset that is currently worthless the way it's being used. It's really no different than growth stocks -- they are bid up with the idea that the last owner of the stock will ride it out in dividends until the final sale of assets.
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