Paying Dividends


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Remember the quaint, old days when only a few technology companies like IBM paid dividends? Well, those days may be quickly fading, according to analysts from Merrill Lynch:

We find investors are increasingly interested in cash flow at tech companies and how it will be used. Much has changed since we wrote two years ago about the need for tech companies to return cash to shareholders, including initiating dividends. Tech is overcapitalized, and high growth is unlikely to return anytime soon.

As if the technology industry needed someone else to remind it that it's getting "more mature."

Among companies, though, that Merrill Lynch says have an inexpensive stock price are IBM, Xerox and Advanced Micro Devices.

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