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Author: spockster303 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Dividend yields on S&P 500, etc Date: 11/4/2001 1:49 PM
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I think I have this right: "From 1980 to 2000 the dividend yield on the S%P 500 feel from 5.4% to 1.1%."

Opinions please on the following:

I am trying to develop a measurement on my portfolio to put against say the S&P dividend yield.
Given holdings:
Dividend paying funds and stocks (mostly REITS)
Growth based stocks
corporate bonds
savings accounts
T Bills
pension & social security

The above represents thw whole "liquid field". Only the growth based stocks do not pay significant dividends. On a specific date I can add up the pay out total income of all the others. However, in this process i am blending measurable market value of holdings with blind bases of social security and pension.

To determine an "income" that can be divided by a meaningful number to produce a dividend yield percentage, I did the following:

On a given date I taqke the market value of all my holdings plus the value of T bills, plus savings accounts - add them up for a rough "total worth".

From that figure I subtract the market value of the growth stocks (no dividends) and use the remaining figure to divide into the income figure. The Tbills and savings accounts definitely drag down the result, and the pension contribution is almost totally blind. Yet all these produce take home pay and reflect a decision to invest in these holdings.

Do you find fault in the formula? If so what can i do to revise it?

Would a quarterly measurment be of some use? If I blend the incomes from stocks, funds, bonds, Tbills, etc, I feel it does not help me try and track how I am really doing. My original purpose was to measure how i am doing with the holdings i manage with income being the objective.

Next i stripped down the hard income received for all the holdings that had a "measurable market value" and divided the hard income by the market value and came up with a figure of 8.2%. Is this good, fair or below average? (this may be slightly overstated because it includes the negligible income from growth holdings - t-bills pulled the number down, and another caveat is that the income includes negligible income from growth stocks).

For my purposes, it looks like I should avoid buying a dividend paying security that has yield of less than 8.2% or I lower my efficiency average. Furthermore, does tracking the S%P dividend average just to see the highs and lows correlate? I am not sure there is a one to one relationship.

Thoughts, opinions and better ideas are much appreciated.

Spockster
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