Hi guys,I'm not suggesting TLS will hit $1 - the number was...

Hi guys,

I'm not suggesting TLS will hit $1 - the number was illustrative - but the point remains the same.

Take the banks. If the CBA's dividend yield in cps dropped by 15% so would the shareprice (at least!) so how many years worth of dividend have you got to receive to recoup the capital loss?

IMO dividend yield is great but in a falling market it does not compensate for the lost capital. In fact a falling dividend works in reverse of what happened for the utilities and banks during the bull market.The higher the yield is (then as with interest rates) the higher the market is appraising the risk in that stock either that the dividend will diminsh or some bigger catastrophe is on its way.

I predict that dividend yield will grow as the Bear develops in much the same way as they shrank during the bull market because now investors will be less willing to pay a premium for the dividend if it carries an implied risk of capital loss.