However, Dell recently initiated its first cash dividend, of 8 cents a share, for an indicated yield of 3.2%. The company has also been buying back stock actively.
In fact, shares outstanding have been reduced by more than 27% since 2006, and 12% in the past year alone. Still, the markets remain skeptical, as doubts have arisen about the future of the PC and the company itself.
Could Dell's confidence, expressed via its dividend, be misplaced? Are the PC and Dell facing extinction? The stock certainly appears to be priced that way. We'll see.
Frankly, I like it when everyone is writing off a particular company or industry. It sometimes provides opportunity. Sometimes there's an overreaction. Look no further than Gannett (GCI), associated with the dying newspaper industry.At the time of publication, Heller was long GCI. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. Follow @JonMHellerCFA