President Bush's plan to eliminate the tax on stock dividends might upend a lot of received wisdom about investing--like the rule that income investments are best in tax-deferred retirement accounts (stocks with a yield might be better unsheltered) or that municipal bonds are the ticket for tax-free income (preferred stock might win out). The Bush plan could also put steam behind stocks that fell out of favor in the grow-grow '90s: those of mature, slowly expanding businesses with reliable cash flow and a commitment to larger dividends. As for bonds, will their appeal fade or increase? To help focus the issues...
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