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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (40593)	5/23/2003 2:47:39 AM
From: Libbyt	Read Replies (1) \| Respond to of 57110

The real winners among stocks will be those that pay high dividends I agree with many of the thoughts stated in this article, and the new tax cuts IMO will make stocks more attractive to many investors. Other companies are pondering raising their dividends in response to the tax plan. "The reduction or elimination of double taxation would cause Citigroup and other companies to consider increasing their dividend," says Todd Thomson, chief financial officer of Citigroup Inc. "That would put more money into the pockets of shareholders, improve the economy and increase equity values." I would think that companies raising their dividends, as well as certain companies starting to pay dividends would help to attract investors. One question for investors is whether the tax cut already has been priced into the market. "I would say most of our customers had completely written off the prospects for significant dividend relief; I don't think it's priced in," says Mr. Trennert, whose research is widely used by institutional investors. But he adds that while many investors were disappointed with the size of the dividend cut, few expected the capital-gains cut, so it isn't clear what the impact will be. The Libbyt "vote" is that this tax cut isn't priced into the market yet.