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>> The dividend AMOUNT has been increasing.

The dividend RATE has fallen.

If you neither purchase nor sell any shares, only the dividend AMOUNT is relevant.
<<

Assuming you intend to hold every share for life and just rely on the dividends for current income, partially true.

But I would suggest that falling *rates* in the face of increasing *amounts* points to potential overvaluation. This is a trend that can't last forever...can it?

Plus, maybe people will pay more for dividends when taxes on them are capped at 15%. Repeal the special tax rate and tax it as ordinary income, and maybe the amount the people will pay for the same amount of dividends will fall quite a bit...

#29
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