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Author: CryingofLot49 Big funky green star, 20000 posts Feste Award Nominee! Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 15886  
Subject: Re: FKA: GSK Date: 2/13/2008 5:28 PM
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One might reasonably argue that increasing dividends is also a slight
predictor of management confidence (though they may be bluffing).
Management confidence may correlate with slightly rosier future, and
since management knows the firm better than anyone, there is a weak
case to be made that rising dividends may correlate with slightly
higher intrinsic value. But it is more like getting a memo that
says 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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