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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: yard_man who wrote (175841)6/27/2002 12:03:18 PM
From: BigMoney  Read Replies (1) of 436258
 
F;ck them. Their businesses have matured and they're still not paying dividends. This market will only bottom when it makes economic sense to hold stocks and you actually get a return for your investment, and that will only happen when dividend yields go up dramatically on the DJ Industrials.

The greater fool theory of investing won't work anymore. Without additional fund inflows into the market (i.e. - new bagholders), there is only one thing left to consider: how much to can you make off your investment without trying to sucker someone else into buying your stock from you for a higher price?

If MCD is only paying a 0.78% dividend, why on earth would any fund manager want to hold it? That companies revenues are growing at the rate of inflation at best. Over time they will pay off their debts and more of the income will do to shareholders in the form of dividends, but how long are people willing to wait for that outcome, and is it worth the 0.78% dividend to hold it in the mean time?

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you all better cover now, you know what happens when i go into one of my rants. <g>
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