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To: KyrosL who wrote (178515)7/9/2002 5:57:35 PM
From: Knighty Tin  Respond to of 436258
 
Kyros, by pumping the new pair of dimes full of easy credit, he pushed stock prices so high that the yields are sucky. The avg. dividend is nothing after taxes and inflation. Of course, the avg. money market yield is less than nothing after taxes and inflation, so that makes dividends relatively more valuable in that one comparison.

The yield on the 500 is 1.62%. 2.00% on the Dow. At a 30% tax rate, you take home 1.40% on the Dow and much less on the 500. Does anyone think that real inflation is lower than those numbers? If so, they have no health care or educational expenses. And don't buy housing or cars. And they sure don't buy insurance.