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Perhaps dividend yield was the wrong concept.

As you point out I should have used 'earnings' and then we are talking about comparing earnings to the 'risk free' rate.

I guess the point I was enquiring about is whether an ever decreasing yield will encourage investors to look elsewhere and ultimately pay greater premiums in other assets.

I've seen the discussions between yourself/DS/craft about these topics in the past and I find them interesting.

With regards to the insurance example, different horses for different courses, obviously there's many players in the market each with differing goals and needs, after all that's what makes a market. I guess I was specifically talking about those investing to achieve a return - I perceive these players to make up the bulk of the market, once again however I could be wrong.