The market is a pretty wild place right now. It’s a swing-trading dream. The intra-day volatility has popped and dropped according to the VIX index, but it’s anyone’s guess what tomorrow holds.Some people are loading up on the high-profile and darling stocks that have pulled back in price. Lots of shares of Apple (AAPL) have exchanged hands between $330 - $340, Netflix (NFLX) dipped down briefly to $190 more than a week ago before exerting its high-growth muscle, and bigger dividend stocks like Coke (KO) had a bounce off the $61.50 range. Other stocks such as Baidu (BIDU) didn’t seem as affected, and investors were not rewarded with a pull-back entry. Other investors are hesitant to jump aboard these stocks wondering if the worst of the Japan incident is not fully known and will... more
Amid the negative movement of the US market, several companies declared their future dividend plans. Some notable dividend payers are discussed here. American Greetings Corporation (NYSE: AM) gained 0.31 percent or $0.07 to $22.52 after it announced to pay a quarterly dividend of 15 cents per share. The dividend is payable on April 21, 2011 to shareholders of record on April 11, 2011. U.S. Bancorp (NYSE: USB) plans to raise its quarterly dividend to 12.5 cents per share, payable on April 15, 2011 to shareholders of record on March 31, 2011. USB lost 0.04 percent or $0.01 to $26.59 despite the dividend growth. Chimera Investment Corporation (NYSE: CIM) announced a decrease of 18 percent in its quarterly dividend to 14 cents per share from its previous 17 cents a share. CIM... more
In a recent article, we introduced the discounted earnings model. According to this model, one of the best fair value estimation methods was to discount the future earnings for a 5-to-7 year period. However, there is one thing that we also need to consider: Fat dividend checks.
For many of us, living on dividends and/or having a lined-up cash-flow from dividends is essential. A strong retirement account requires solid and stable dividend income. Therefore, we analyzed the top yield U.S.-based companies that are engaged in basic materials, consumer goods, healthcare, services and technology sectors. The financial stocks are excluded from this analysis, since there is so much volatility regarding both their share prices and dividend payments.
The compiled list consists of 32... more
Wal-Mart (WMT) a Dow stock and Dividend Aristocrat, has retail units in 15 countries with more than 2 million employees worldwide. Sales for the FY2011 (ending January 2011) were $419 billion, an increase of 3.4%, with EPS of $4.18 and adjusted EPS of $3.66. Diluted EPS from continuing operations was $4.07. WMT has a 4-point plan to improve performance in US stores with $260 billion sales (operating profits were up 3% last year): Price leadership - WMT will deliver consistent every day low price on a basket of goods. Broadest assortment possible - work with suppliers to deliver the broadest assortment at the lowest price. Improve remodel program - improve store remodel efficiency and return to right size square footage. Multi-channel initiatives - increase access for customers so... more
Oil and gas companies are often common picks for dividend investors. They generally provide above average dividends as well as overall inflation protection, depending on their specific industry. I previously wrote an article that highlighted 17 such stocks. The focus was simply to review some of the top dividend payers in the industry. However, that type of analysis is just a first pass look. The stocks should offer varying valuation levels based on different metrics. At first glance, some might seem overvalued while others might seem undervalued. Simply chasing high yields is not a great strategy. One has to also consider the risk associated with the investment and the potential upside. Furthermore, dividend yields are just one aspect of a stock's total return, where total return for a... more
Pre financial crisis, banks provided some of the most consistent dividends, but the crisis for the most part wiped out the money returned to shareholders. Even the better banking stocks like JPMorgan (JPM) only maintained small dividends of $0.20 or 0.4% on an annual basis. Basically just enough to claim they pay a dividend and not much more. Buybacks were all but outlawed by the regulators. On Friday, the market got news from some of the large banks that the government will allow them to start returning capital to shareholders. Considering our focus on Net Payout Yields (combination of dividends and net stock buybacks) we wanted to analyze the forecasted payouts of the top banks to see which ones will now be at attractive yields. Details based on recent company press releases:JP Morgan... more
After going ex-dividend Monday, shares of American Capital Agency Corp (AGNC) were falling further after hours on news the company will be offering 27,000,000 shares of stock. Underwriters will have the possibility to sell an additional 4,050,000 shares to cover any overallotments. Investors who have held AGNC for a few quarters should have seen this coming since it is the 4th large equity offering since September. However, looking at the market response to previous offerings, investors might want to participate in this secondary. Here's a quick look at the last three offerings and the market reaction: On September 28, 2010, AGNC priced a public offering of 11.5 million shares of stock at $26, raising $285 million. Shares closed at $26.89 that day, and were approaching $29 one month... more
The Dividend Report Card wasn't designed as a buy or sell signal, but rather as a tool to gauge the health of a company's dividend. For a full explanation of each category, click here for a tutorial. Today's pupil is United Parcel Service (NYSE: UPS ) , which posts a 2.85% dividend yield.... more
The US market maintained its upward swing during the day's trading amid reports that Bank of America Corporation (NYSE: BAC) will reapply to the Federal Reserve to hike its dividend after June 30, 2011. Several companies declared their future dividend plans to give impetus to the market. Citigroup Inc (NYSE: C) plans to pay a quarterly dividend of one cent per share in its Q2. However, Citigroup was down 0.78 percent or $0.035 to $4.4 during the day's trading. Wells Fargo & Company (NYSE: WFC) raised its dividend to 12 cents per share from 5 cents a share. WFC was down 0.25 percent or $0.07 to $31.76 despite raising the dividend. Lowe's Companies Inc (NYSE: LOW) announced a quarterly cash dividend of $0.11 per share, payable on May 4, 2011 to shareholders of record on April 20,... more
Citigroup Inc. (NYSE: C) announced Monday that it has approved a 1-for-10 reverse stock split of its common stock, while the bank has also reintated a quarterly dividend of $0.01 per common share for the second quarter of 2011.Strategic Stock Trading: Master Personal Finance Using Wallstreetwindow Stock Investing Strategies With Stock Market Technical Analysis CEO Vikram Pandit said, "Citi is a fundamentally different company than it was three years ago. The reverse stock split and intention to reinstate a dividend are important steps as we anticipate returning capital to shareholders starting next year." Citigroup said that the reverse stock split will be effective at the close of trading on May 6, while the common stock will begin its adjusted trading on May 9. The split will... more