Comments on: 2011 Dividend tax increase cuts real value of S&P500 by 30%.

By: panama red

panama red — Fri, 18 Jun 2010 02:29:56 +0000

This week BP Aug 11 bonds dropped to 90 with a YTM of 11.5%.

By: Jui

Jui — Mon, 14 Jun 2010 14:03:21 +0000

Do dividend taxes really matter, though, given that companies can hoard the cash, buy back stock, and pay off debt to avoid subjecting shareholders to taxes? Of course, they will only do that if the market demonstrates that it cares by punishing the dividend payers. Perhaps the market is so dominated by tax-exempt pension funds that it will not care, though.

By: Mike

Mike — Mon, 14 Jun 2010 13:58:34 +0000

Thanks, Pej. Glad you noticed that. Seaterk, I agree, but it doesn’t hurt to dream about the great buys we can get in the later stages of a secular bear market.

By: seaterk

seaterk — Mon, 14 Jun 2010 13:33:46 +0000

I noticed that Diamond Drill is at the top of the list, not surprising considering how much it has dropped because of the BP oil spill. These’s still way too much risk in this market to even think about long haul investing.

By: PEJ

PEJ — Mon, 14 Jun 2010 12:53:21 +0000

Interesting point. I would just emphasize that the dividend yield they show on your link is not the real one, but the forecast for next year: ”
Estimated Dividend
[For the
next year]”
Given the tendency to see things with pink color shades, makes it probably over optimistic.