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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: early retirement and future planning Date: 12/7/1998 10:56 PM
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Sounds as though Dad was a Prince! I think that you will see if you read the financial literature for the last few years that the tendency is for companies not to pay much in the way of dividends. For example, Wal-Mart is paying the same dividend, pretty much, when its stock is at 70 as it did when it was at 20. And Microsoft probably will never pay a dividend even though they're sitting on $15 billion cash, or whatever it is now. Shareholder value is increased through things like stock buybacks. This makes some sense now that long-term capital gains are taxed at 20% and not as ordinary income as dividends are.

The high yield stocks always used to be utilities -- Consolidated Edison, that sort of thing. But they were regulated and their profits were assured. But competition is coming to utilities too, and I see no way that you will get (say) 6% dividend out of a utility 5 years from now.

If stocks continue to appreciate then it makes sense to sell some occasionally and realize come cash. Also, as the Fool will tell you somewhere, you want to look at your portfolio at least once a year to see whether it is still in consonance with your investment goals and whether it has become skewed in some fashion. So, inevitably, I think you will have to do some active management of your money even if (and my customary apologies in advance if I am misreading you) your inclination is to forget about it and just collect.

Morla, one of my retirement options that is still open is to find a wealthy woman. I hope you will not mind if I follow your posts.
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