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Sigh, how railroads have lost their importance

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[quote]QUOTE: Originally posted by MP173 Microsoft's dividend situation is sort of a once in awhile type thing. They have accumulated so much cash, no make that SO MUCH CASH, that they have nothing to do with it. So, they are giving it back to the owners of the company. Why? Lets see: 1. Cannot find anyone worth while to purchase in tech industry. 2. Do not want to fight Justice Dept over any purchases in the tech industry. 3. T bills and commercial paper are returning about 3% now, which tends to drag down the ROE. 4. Railroads are not a core business and should not be invested in even tho Mr. Gates does seem to like trains (or so I have read). Plus the ROE for railroads is pretty low. 5. The tax rate on dividends is fairly low at this time, so it makes sense to do so. 6. By being a dividend paying company, it puts Microsoft into play as a "value" stock, thus making it a stock which "value" funds can purchase. So, it is more liquid. Microsoft is a textbook company for stocks that should be owned. Enormous brand recognition and huge ROE. Same for Coca Cola, McDonalds, and a few others. Note those companies have relatively few assets, the opposite of rails, which are asset intensive, have no brand loyalty and basically have a product that is a commodity (except for value added situations) [/quote] So they cant all give there employees a raise who is the real sweat of there company?
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