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URL:  http://boards.fool.com/it-was-a-data-point-nowhere-in-my-post-did-i-26412184.aspx

Subject:  Re: 35% dividend increase Date:  2/24/2008  1:24 AM
Author:  Hohum77 Number:  4208 of 8711

It was a data-point. Nowhere in my post did I suggest to rush out and buy NM because of the dividend increase.

Here's an observation, I think it speaks volumes when a smaller company in a very cyclical industry increases its dividend, especially in the current market environment. Meanwhile, bigger and "safer" blue-chip companies like Citigroup, Fannie Mae and Washington Mutual have slashed their dividends. I have not verified this, but I suspect that NM's "tiny" dividend yield is greater than the dividend yield of at least half the companies in the S&P 500. If I were to buy NM shares, it would be because I believe the company growth prospects. The dividend increase speaks to the company's confidence in its business.

BTW, if your statement
I do not buy stocks for their dividends. is true, why are you
frequently on the Berkshire Hathaway (B-H) board complaining about B-H not paying a dividend? Those guys, Warren Buffett & Charlie Munger, must be lousy investors ;)



Hohum
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