THREAD IS CLOSED! --- Bob Brinker Free Discussion Site 11K+: dividends

» Happy - dividends

In response to message posted by Fahrenheit451:

Filipe did a good job in explaning the interrelationships of dividends and earnings. I would only add in regards to the performance of the sp500 during the period 1966-82, in theory had these stocks not paid a 6% dividend, one would suspect their stock prices would have gone up an incremental 6% more per year. After all, they would have been plowing back this money into capital equipment etc., which should at least in theory, have increased the future cash flow and thus the value of the stock. Hopefully by more than 6% a year.

-- posted by Happy