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Dividend Bubble Is Impossible (23 Feb 2012)

Many SA afraid recently about dividend bubble.
IMO a possibility of dividend bubble is almost zero because dividend stocks have build-in negative feedback mechanism:
When money shifts to dividend stocks their yield drops and attractiveness of dividend stocks decreases.
A bubble can appear only in system with positive feedback there a fluctuation has stronger chance to increase rather than to disappear.
This mathematical truism is well known in natural sciences and engineering for any natural or artificial system (including market).
The only one exclusion is the case when company increases dividends with stock price to keep yield constant but probability of this is almost zero.