AIM UK

[ls7550]

Indicated cash reserves 27%

The dividend yield for the FT All-Share has risen to 5.14%.

0.5% was shaved of BoE rate today in a multi-national simultaneous rate cutting effort to address the financial crisis.

Whilst some are predicting that we may be near a bottom historically dividend yields have risen as high as 12%, less rarely 8% and not that infrequently to 6%. So in principle we could still have a lot of downside to come and yet still be within historical boundaries. A 6% yield would reflect a further 16.6% downside, an 8% would occur after a 36% decline from current levels, and a 12% yield would require a 57% decline.

The iBox table caters for a further 31% decline before we'd be fully loaded (zero cash).