### Comment:
This isn't true. If MU for example had the same payout ratio as MSFT they'd have an 11% dividend. The stock would definitely move up and price that more reasonably.  
  


### REPLY:
Read through Dividend Policy, Growth, and the Valuation of Shares by Miller &amp; Modigliani (1961). They run through mathematical proof that dividends do not affect share price. Now, I am not arguing that dividends can be used as a signal to investors, but that does not invalidate M&amp;M's proofs.

### END.