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Technology Stocks : The New QUALCOMM - Coming Into Buy Range -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (5935)	2/14/2010 4:41:34 PM
From: Art Bechhoefer	Respond to of 9129

Equating a stock's dividend yield with an expected annual return is not what I suggested. A stock's dividend is a PORTION of the expected annual return. One can expect a company like FPL, whose earnings increase somewhere near 7% annually, or more, to see an increase in its stock price, perhaps in the range of 3 to 10 percent a year, depending on market conditions, inflation, etc. Add the current 4 percent yield to that and you get a fairly decent expected return at relatively low risk. FPL, by the way, is not simply a utility company but has a growing business generating electric power for sale on the unregulated market from facilities that include nuclear, solar, and wind power. It is the largest wind power producer in the U.S. In other words, an investor can expect at least a 6% return on FPL if purchased at its current price. Art