Replies to post #28822 on A.I.M. Users Bulletin Board (AIMUSERS)

[lionhead0]

Hi Clive, The big question now is, what is the "E" of P/E?

I'm beginning to come round to that point of view. The dividend is tangible, not an estimate of the future. The insiders have a better insight as to what they can pay out as dividends in the future.

One can then invert the P/E for the earnings yield to compare with the Divd yield.

Best, Tim

[Toofuzzy]

Hi Clive

>>>>>>The big question now is, what is the "E" of P/E?

This is why I personally prefer to use P/D

Earnings forecasts tend to be external. Dividends are more internal, set to what the company forecasts will be sustainable/growable :) <<<<<<<

I don't know if that is any better. It is not like dividends don't get cut suddenly. Especially in a market like we are having now or an industry like banking and finance. Companies tend to delay cutting a dividend till it is too late.

If I was a bank I would have said (in April) that things look like shit even though we are strong. So we are cutting our dividend so we will have the assets to take advantage of future opportunities we expect to see and to make us even more secure.

Toofuzzy