CEO Jeffery Gardner did say during the company's second-quarter conference call in August that, "We remain incredibly focused on the dividend at Windstream and understand how important this is to our shareholders."
Gardner's feelings about dividends were echoed by CFO Anthony Thomas, who said in the third-quarter conference call last month that "the steps we are taking ... [will] provide security toward the most attractive dividend yields in the S&P 500."... more
Published Fri, 02 Dec 2011 21:01:31 GMT on The Motley Fool
Stock symbol(s): WIN,FTR,LEAP,PCS,USM
And if you think that investing heavily in dividend-paying companies is a good idea in uncertain times, you're right. But, that's not what this article is about.
Instead, I'm taking a more fundamental view: looking for four key characteristics a company would need to have in an economy where citizens are simultaneously deleveraging and downshifting.... more
Published Fri, 02 Dec 2011 21:11:52 GMT on The Motley Fool
Stock symbol(s): AAPL,COH,COST,DDD,SSYS,WFM
I received a comment/question from Jeff Paul, a fellow author and contributor to Seeking Alpha on my recent article “Yield On Cost Is A Valuable Investing Tool: McDonald’s Vs. Procter & Gamble.” Jeff's question provided me the opportunity to expand more on the important concept of yield on cost, which I prefer to call “growth yield.” Here is Jeff’s question, as follows:
Nice article, Chuck. Lots to think about. There is one statement that I would like you to clarify. "A rapidly expanding yield on cost definitely contributed to McDonald’s (MCD) strong performance…" Seems like that is putting the cart before the horse. I would argue that McDonald's strong performance (i.e. earnings growth), coupled with its decision to increase the... more
Published Fri, 02 Dec 2011 15:55:45 -0500 on SeekingAlpha
Stock symbol(s): MCD,ROST,SCG
The U.S. economy continues to have significant headwinds (e.g., high unemployment, European credit contagion, weak housing market, high debt levels, etc.) and this "relief rally" is likely to be short-lived. The global economy is being weighed down by a debt problem that took over two decades to create. Given the significant build-up in peace time debt, we believe that the debt problem will take years to sort out, providing significant uncertainty and market volatility. The leverage that has been built up in the system will not unwind for years to come.
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As central banks drive down short-term rates to deal with high debt levels and low growth rates, investors have been flocking to dividend stocks in search of yield. That said, any pullback in the market should be an... more
Published Fri, 02 Dec 2011 15:29:05 -0500 on SeekingAlpha
Stock symbol(s): ED,LLY,MO,NLY,RAI,SO,T,VZ
Aetna Inc. (NYSE: AET) today announced that its Board of Directors increased the company’s quarterly cash dividend to $0.175 per share on the company’s common stock. The dividend is payable on January 27, 2012, to shareholders of record at the close of business on January 13, 2012.... more
Published Fri, 2 Dec 2011 20:15:00 UT on BusinessWire
Stock symbol(s): AET
Charles Dickens opened his classic book A Tale of Two Cities with this quote: "It was the best of times, it was the worst of times...we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way..."
Does that sound a lot like today's economy to anyone else? Wall Street has recovered nicely since the financial collapse of 2008. Main Street? Not so much. And frankly, I'm perplexed why Wednesday's European bailout notice would lead to such a gigantic surge. After all, doesn't the admission that such a bailout even looked necessary indicate that the real global economy still stinks?... more
Published Fri, 02 Dec 2011 18:56:23 GMT on The Motley Fool
Stock symbol(s): CAT,CVX,IBM,MDT,MMM,WMT
Interested in knowing what stocks hedge funds are buying? We ran a screen on the dividend stocks of the S&P 500 for those seeing the most significant net institutional purchases over the current quarter. These stocks pay dividend yields above 1% and sustainable payout ratios below 50%.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
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Do you agree with hedge funds on these... more
Published Fri, 02 Dec 2011 14:18:15 -0500 on SeekingAlpha
Stock symbol(s): COL,ECL,JNS,LM,WHR,WMB
If you want to analyze a company’s sales trends, one idea is to consider their growth in inventory over time. Comparing this to growth in revenue could show some interesting results. We ran a screen on dividend stocks with high liquidity (measured by current ratios above 3) for those with positive trends in inventory: growth in quarterly revenue outpacing growth in quarterly inventory year-over-year. We also screened for companies with quarterly inventory decreasing as a percent of current assets. To understand why these trends are positive, think of why the opposite trends would be negative. If revenue were growing slower than inventory, it may indicate that the company is having trouble selling its inventory – although this could just indicate inventory building or a change in... more
Published Fri, 02 Dec 2011 14:29:38 -0500 on SeekingAlpha
Stock symbol(s): BRCM,BRS,CASC,CMP,FELE,FL,HAYN,LANC,RES,SNHY,STJ,STLD
It is very easy for a CEO to get on a conference call and talk about confidence in the future while communicating glowing projections, but do they really believe what they are saying? Are there any actions that would make you believe what they are saying? Senior management purchasing company stock is a strong indicator of confidence in the future. Another indicator is sticking with a dividend plan, including regular increases.
Below are several select companies with a management confident enough to increase their cash dividends:
First Pactrust Bancorp, Inc. (BANC) operates as a holding company for Pacific Trust Bank that provides retail banking services primarily in San Diego and Riverside Counties, California. December 1st the company increased its quarterly dividend 4.3% to $0.12... more
Published Fri, 02 Dec 2011 16:47:51 GMT on iStockAnalyst
Stock symbol(s): ARE,DIS,ECL,FPTB,MAA,OFG,OGE,RGC,RIMG,TBHS,TTC
After scouring through dozens of companies that raised their dividends in November, I've come up with seven that truly stood out among the pack. Here they are in no particular order:
New Projected Yield
Home Depot (NYSE: HD)... more
Published Fri, 02 Dec 2011 16:32:04 GMT on The Motley Fool
Stock symbol(s): DIS,HD,LNC,NKE,SBUX,UNP,WFM