Dividends Matter: The Changing Face of Technology
Published Apr 11, 2011 on Seeking Alpha

"A penny saved is a penny earned." - Benjamin FranklinSEAGATE TECHNOLOGIES (STX) Seagate Technology PLC (STX) recently announced the establishment of a quarterly cash dividend after halting such payments in 2009. The quarterly payout of $0.18 per share is around a 5% yield. The stock price jumped on the news as Seagate also announced expectations for stronger than expected sales and margins for the rest of the year. It's unclear if the forecasted strength is a near term event caused by supply disruptions in Japan or if the surprise is driven by fundamental demand strength. What is clear is that the strong dividend is a welcome sign.The dividend is a reasonable decision, but among technology stocks, this was nowhere near a guarantee. In 2010, Seagate Technologies was about to be acquired, but the deal finally fell through in November 2010. In the short term it saved some face... Read more