RE: RE: RE: IRE: 2.5% ?_lunduI wasn't suggesting that dividends and mortgage spreads are the same; I was referring to Stocknup posting that going from a 5% yield to 2.5% yield was no reason for the stock to drop so much. In fact, it is a big deal. It is a 50% cut in your dividend payout - from $1.04 a share to $.52 a year. The market certainly thought it was important because the stock tumbled. MFC was, I believe, being prudent in conserving cash and I think the company did this because a lot of their investment products were tied to the market and with the market being in such a fragile state a year ago (maybe it still is), they were faced with possible huge liabilities in the future. I also have shares in Sunlife and they haven't cut their dividend so far but then I think they don't have the same market based liabilities facing them.
I'm in for the long term - 5 to 10 years, maybe more. I think that MFC might increase their dividend by year end or early next year and when that happens the market will be reassured and the stock price will gradually increase.
Lundu