One might reasonably argue that increasing dividends is also a slightpredictor of management confidence (though they may be bluffing).Management confidence may correlate with slightly rosier future, andsince management knows the firm better than anyone, there is a weakcase to be made that rising dividends may correlate with slightlyhigher intrinsic value. But it is more like getting a memo thatsays things are getting better. Actually, constantly rising dividends have proved to be one of the few ways to outperform the market over time. This has been shown/proven by both academics and fund managers [who buy only said stocks].The case is far from weak. It is strong, very.Of course, this holds only for a portfolio, not any single name as we all know - I totally agree with you there.
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