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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...

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