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Strategies & Market Trends : Waiting for the big Kahuna

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To: Tommaso who wrote (14025)2/11/1998 9:28:00 PM
From: Liatris Spicata  Read Replies (1) of 94695
 
Thommaso-
<<and--perhaps most significantly--dividend yield>>

I suspect thee is missing the boat on dividend yield. If investors choose to take more of their gains in the form of capital gains and less in income, the yield will suffer but the total return on investment may remain high. Investors are making this choice in part because of tax laws and, probably, in part because of a secular change in attitude. Furthermore, significant wealth is being created by companies with an insatiable demand for capital- tech and biotech figure prominently here- further reducing the attractiveness of dividend. Just for example, until 2-3(?) years ago Intel paid no dividend- I suspect 30 years ago it would have been unheard of for a company of Intel's stature not to pay a dividend. Even today their dividend is paltry.

It's not your grandfather's market or economy anymore!

Regards,

Larry
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