Welcome back former student Mr. Mc. And let it be known that whenever I talk in England, I tell the students "don't listen to the triumphal trio as to their conclusions for the future. They suffer from the English disease or the Old Shiller disease. They believe that the dividend model is the sine qua non of the thing that causes returns. And because the dividend yield is not as high now (or in the crazy Shiller instantiation the dividend yield is not as volatile as the stock returns) that the return in the future can't be as high as the past." But .. but. The retention rate varies with possibilities for after service returns, and likely returns on investments and investor preference. If no dividends were paid, the returns would be at least as high, probably higher considering all the opportunities for rent payments from the foundations like those of the cattle trader and the returns from lobbying.

Philip J. McDonnell writes:

In the US the dividend yield is only part of the non-appreciation return. Another significant part is the potential for stock buybacks and other financial engineering maneuvers.

Jim Sogi writes:

Wow, all the old timers coming back, Lack, Seattle Phil, Roger, Kim, Larry, Jeff. Almost like the old glory days when Chair was a high roller and rented the whole Delmonicos for a party for a thousand friends. Welcome back Phil! Those were the days! I love the Spec List! Thanks a billion Mr Niederhoffer for everything. 


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