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Originally Posted by LowryBigwood
That's a good point Bob and very valid. I'm sure Google is aware of this too, but I wonder how Google actually views this and in turn handles the results with both kinds of domains.
On the higher competition keyword phrases I would like to see some examples of hyphenated domains kicking non hyphened domains' asses. 
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It would be nice to know google views on anything and i suppose we can only guess most of it but to actually validate this theory would take huge amount of research.
I don't wanna go upsetting anyone by posting up examples but there are a fair few about that i have seen here and there.
It could be true but then again what purpose would it serve if a hypenated domain is more relevant to a search than one that isn't.
Edit: just going by one hypenated domain using webmaster tools on Top search queries with positions ranging from 10 to 1.
Theres a fair few top search terms with a position of 1 but then again i'd have to look at the % they appear which is from 35% and below.
I'm not sure if this is anything to go by as link popularity is obviously gonna have influence?