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Message: Re: Charts & Comments - An interesting comment on dividend yields

Aug 20, 2010 06:46PM

From Wikipedia:

"Dow Industrials

The dividend yield of the Dow Jones Industrial Average, which is obtained from the annual dividends of all 30 companies in the average divided by their cumulative stock price, has also been considered to be an important indicator of the strength of the U.S. stock market. Historically, the Dow Jones dividend yield has fluctuated between 3.2% (during market highs, for example in 1929) and around 8.0% (during typical market lows). The highest ever Dow Jones dividend yield occurred during the stock market collapse of 1932, when it exceeded 15%.

With the decreased emphasis on dividends since the mid-1990s, the Dow Jones dividend yield has fallen well below its historical low-water mark of 3.2% and reached as low as 1.4% during the stock market peak of 2000."

http://en.wikipedia.org/wiki/Dividend_yield

conclusion: A dividend yield of 20%, factoring in an increase of M1 in any given year of 12% and an historical average of 8% at a market bottom should not be considered an outlandish or wild fancy for a producing gold stock with robust grades in a gold mining stock bear market.

GBN.V should start small, say 0.5ยข/month dividend, which is around 17% yield on hypothetical earnings of $1200/oz. gold and ~70koz. per year. Gold bullion has had a price change of 17% yoy.

This instead of gaming for share price appreciation.

-F6

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