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If they cut dividends they get kicked out of a multitude of basket goods retirement products which will absolutely bomb the living fuck out of the stock price a

If they cut dividends they get kicked out of a multitude of basket goods retirement products which will absolutely bomb the living fuck out of the stock price and send them on an even worse death spiral.

andreime 4y ago
I wonder how Intel employees getting stock options would feel about having the price drop another 50%.
adam_arthur 4y ago
They’re going to be forced to cut it in the end anyway, waiting years to do it makes it all the worse. They have the cashflow to cover any R&D and capital investment without the need to depend on equity financing
olliej 4y ago
So? Intels stock price dropping does not impact intel’s revenue, its expenses, or in fact any part of running the company at all. Also eventually the cost of losing all your good people, and failing to keep up with the rest of the industry will mean that 5% dividend is 5% of much less actual income.
- jterrys 4y ago
  That's absolutely not at all how it works. If you tank your stock price you tank your ability to raise funds which tanks your debt. Your stock price is absolutely important to running your company.
  - olliej 4y ago
    I'd be interested in seeing the banks that say "we will give you a loan on the basis of your artificially inflated stock price, that is maintained by you giving out more dividends than you can afford at the cost of your long term revenue potential" vs "we will give you a loan on the basis of your long term ability to repay that debt". If on the other hand you mean "raising funds" by selling stock in the company, then obviously you need that stock to be valuable when you actually need to raise the funds, except intel is only able to maintain its present stock price by destroying it's future revenue potential. e.g. its stock _only_ has short term value at the moment because of over paying dividends, if it needs to "raise funds" it means it no longer has the cash for the BS dividend so its stock will be worthless then. Maintaining a dividend yield to enable fund raising, only makes sense if maintaining said yield doesn't require directly destroying the true value of the stock.

andreime 4y ago

I wonder how Intel employees getting stock options would feel about having the price drop another 50%.

adam_arthur 4y ago

They’re going to be forced to cut it in the end anyway, waiting years to do it makes it all the worse. They have the cashflow to cover any R&D and capital investment without the need to depend on equity financing

olliej 4y ago

So? Intels stock price dropping does not impact intel’s revenue, its expenses, or in fact any part of running the company at all. Also eventually the cost of losing all your good people, and failing to keep up with the rest of the industry will mean that 5% dividend is 5% of much less actual income.

jterrys 4y ago
That's absolutely not at all how it works. If you tank your stock price you tank your ability to raise funds which tanks your debt. Your stock price is absolutely important to running your company.
- olliej 4y ago
  I'd be interested in seeing the banks that say "we will give you a loan on the basis of your artificially inflated stock price, that is maintained by you giving out more dividends than you can afford at the cost of your long term revenue potential" vs "we will give you a loan on the basis of your long term ability to repay that debt". If on the other hand you mean "raising funds" by selling stock in the company, then obviously you need that stock to be valuable when you actually need to raise the funds, except intel is only able to maintain its present stock price by destroying it's future revenue potential. e.g. its stock _only_ has short term value at the moment because of over paying dividends, if it needs to "raise funds" it means it no longer has the cash for the BS dividend so its stock will be worthless then. Maintaining a dividend yield to enable fund raising, only makes sense if maintaining said yield doesn't require directly destroying the true value of the stock.