This is intended for educational purposes only. This should not be construed as a recommendation
to buy or sell any security. The information contained herein is not meant to constitute specific
investment advice. An investor should consult with Don A. Slabaugh (DAS), or his or her own
professional financial  adviser (if not DAS), prior to acting on any of the information stated above.

market, represented by the pink line, ended that 11 year period where it began!
There was no appreciation in market value.

Now, look at the yellow line. This represents the dividend paid by the S&P. It nearly
Now look at our current market. Again, the pink line shows that the market made no
net price gain from 2000 to the end of 2006. Yet, during this 7 year period, the
dividend (yellow line) grew about 50%!. (Charts are from year end to year end.)
1,265%! Share prices often fluctuate wildly. On the other hand, dividends of
established companies tend to be stable, and to grow over time. No other liquid
asset class offers investors the opportunity for increasing income flows. The
greatest ultimate value in owning a company’s stock is its potential future dividend
stream. When a good stock falls, an investor can buy that future dividend stream at
a better price.

August 17, 2007