Remember we have no choice but to play the game, and since we must play, let's play to win. Stocks are an important tool in realizing our dreams. Below is a graph comparing dividend yields with fully taxable yields by tax brackets.

Stock Dividend Yields Compared to Fully Taxable Yields

2005 Tax Year

How to read the table:
The yields inside the table are the yields that are required on a fully taxable investment,
at the appropriate federal tax rate, to equal the stock dividend yield on the left hand column.

Federal Tax Bracket	15%	25%	28%	33%	35%
Taxable Income Single Return ($)	$7,301 - $29,700	$29,701 - $71,950	$71,951 - $150,150	$150,151 $326,450	$326,451 +
Taxable Income Joint Return ($)	$14,601 - $59,400	$59,401 - $119,950	$119,951 - $182,800	$182,801 - $326,450	$326,451 +
Stock Dividend Yield (%)	Fully Taxable Yield Required to Match Stock Dividend Yield (%)
1.00	1.12	1.13	1.18	1.27	1.31
1.25	1.40	1.42	1.48	1.59	1.63
1.50	1.68	1.70	1.77	1.90	1.96
1.75	1.96	1.98	2.07	2.22	2.29
2.00	2.24	2.27	2.36	2.54	2.62
2.25	2.51	2.55	2.66	2.85	2.94
2.50	2.79	2.83	2.95	3.17	3.27
2.75	3.07	3.12	3.25	3.49	3.60
3.00	3.35	3.40	3.54	3.81	3.92
3.25	3.63	3.68	3.84	4.12	4.25
3.50	3.91	3.97	4.13	4.44	4.58
3.75	4.19	4.25	4.43	4.76	4.90
4.00	4.47	4.53	4.72	5.07	5.23
4.25	4.75	4.82	5.02	5.39	5.56
4.50	5.03	5.10	5.31	5.71	5.88
4.75	5.31	5.38	5.61	6.03	6.21
5.00	5.59	5.67	5.90	6.34	6.54
5.25	5.87	5.95	6.20	6.66	6.87
5.50	6.15	6.23	6.49	6.98	7.19
5.75	6.43	6.52	6.79	7.29	7.52
6.00	6.71	6.80	7.08	7.61	7.85
6.25	6.99	7.08	7.38	7.93	8.17
6.50	7.26	7.37	7.67	8.25	8.50
6.75	7.54	7.65	7.97	8.56	8.83
7.00	7.82	7.93	8.26	8.88	9.15

Stocks are not fixed income investments and may not distribute dividends. Stocks are subject to market risks, including the potential loss of principal invested. Tax considerations should not drive investment decisions. Please consult your tax advisor before taking any actions.