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Author: DreadPotato Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 253091  
Subject: New Focus for the market Date: 11/7/2012 9:56 AM
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Gross: Dividend Stocks at risk if tax rates rise.
http://video.cnbc.com/gallery/?video=3000126950

The election results were a real disapointment.
For those like myself that depend on SS and investing of savings to replace living expenses in retirement.

But what to do? Many of the current outperforming screens have included significant dividends and were backtested during quite different conditions than we are looking foward to. Some changes will be required especially for taxable accounts I fear.

gdm
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Author: editedby One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 240101 of 253091
Subject: Re: New Focus for the market Date: 11/7/2012 11:04 AM
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The election results were a real disapointment (sic).

Wasn't there a thread applauding the lack of political discussion just the other day?

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Author: dusty2004 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 240102 of 253091
Subject: Re: New Focus for the market Date: 11/7/2012 11:41 AM
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What were the returns on those screens like during the 90's? That would be the rates they would return to.

Dusty

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Author: DreadPotato Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 240103 of 253091
Subject: Re: New Focus for the market Date: 11/7/2012 1:55 PM
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What were the returns on those screens like during the 90's? That would be the rates they would return to.

Not sure that period would be a good benchmark, but I guess the tax rate might be similiar. 1990's were worse that 2000's before tax for YEY.


YLDEARNYEAR 1-5, 10

      1990 -    1999                2000 -    2010                 2010 -    2012
1-5 DIFF = 3 1-5 DIFF = 31 1-5 DIFF = 9
CAGR 21 18 CAGR 32 1 CAGR 19 10
GSD 16 14 GSD 30 20 GSD 38 19
Sharpe Ratio 1.07 0.97 Sharpe Ratio 1.14 -0.02 Sharpe Ratio 0.69 0.61

1-10 DIFF = 2 1-10 DIFF = 25 1-10 DIFF = 7
CAGR 20 18 CAGR 26 1 CAGR 17 10
GSD 14 14 GSD 30 20 GSD 29 19
Sharpe Ratio 1.09 0.97 Sharpe Ratio 1 -0.02 Sharpe Ratio 0.74 0.61


gdm

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Author: opihiman911 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 240107 of 253091
Subject: Re: New Focus for the market Date: 11/7/2012 3:35 PM
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Not sure if it will make much difffernce in my investing decisions. I look at it this way, would I rather pay 25% tax on a $1.00 dividend and take home $0.75, or would I rather pay 0% tax on no dividend and take home nothing? I'll take the $0.75 home anyday.

Now what it may change is the way companies pay out the dividend. Can a company keep the 2% dividend cash they payout, invest it in the growth of the company and return 6% in capital returns? That will greatly affect our yeild screens. It could push our yeild screens more into the world of REIT, MLP & LLP companies that are reqiured by law to payout their profits. All together not a really bad place to have a little chunk of your portfolio anyways, I just liked it when the screen would pick a beaten down company that pays a solid dividend along it a MLP or two.

Cory

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Author: ep0001 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 240108 of 253091
Subject: Re: New Focus for the market Date: 11/7/2012 4:15 PM
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The election results were a real disapointment (sic).

A fine line between disappointment from a financial viewpoint and disappointment for other reasons

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