02-19-2014, 10:09 AM
(02-16-2014, 08:24 AM)hendi_alex Wrote: Over the past few years, cash on the books and low debt have been two of my most heavily weighted metrics to consider before buying any tech company. I find high cash coupled with low debt to be very comforting when considering dividend safety, ability to raise the dividend, and safety buffer against short term negative hits that a company may take.
I agree with this completely -- especially the part I bolded. Companies have good spells and bad spells that can last for several quarters or even years. Part of the ups and downs and ebbs and flows of being in the market. A big cash pile and low debt can help a company weather the lean years and smooth out those bumps.