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NovoMira

11/03/08 10:11 AM

#1406 RE: rayrohn #1405

Bye-Bye Dividends

Stock dividends are in jeopardy on multiple fronts. This is not good news for equity income investors or the US stock market overall. Four forces are converging on and against US dividends:

Companies are cutting dividends or not raising them
Tax trap in existing dividend tax rules
Congress will legislate higher dividend taxes after 2008
Possible legislative mandate for TARP participants to suspend dividends.

The delicate condition of investor psychology, the simple math of dividends as part of total return, and the comparative yield opportunities in developed foreign markets, suggest that declining dividends would depress US stock prices.

http://seekingalpha.com/article/103570-bye-bye-dividends?
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NovoMira

11/03/08 10:17 AM

#1408 RE: rayrohn #1405

I've been involved with the stock market since 1987, Ray...frankly, I'm tired of it but have no choice except to continue at this point.

Looking at the current PPS of so many stocks is the most tempting incentive to buy since I discovered...well, all the good things in life. LOL

Are you buying?