There has been lots of news lately about the number of companies that are cutting dividends to preserve capital. In many cases, we believe these cuts make good economic sense when considering that capital and cash are kings and so hard to come by in the current economy.
And not all dividend news is bad. In fact in selected industry sectors there is a lot of good news. Those sectors with the most dividend hikes are in what we call the "essential services" sectors such as consumer staples, energy, health-care, and utilities. Companies in these sectors produce products that we use every day. In most cases, we don't have to borrow money to buy them. In many respects, these companies and their products have been woven into the fabric of our lives.
In recent weeks eight of the companies that we follow have hiked their dividends. In the consumer staples sector Coke (KO) raised its dividend 8%, Sysco (SYY) 9%, and Colgate (CL) surprised us with a 10% increase. In the energy sector, Kinder Morgan Energy Partners (KMP) recently hiked its dividend on a year-over-year basis by 11%. In the health-care sector, Abbott Labs (ABT) raised its dividend a greater-than-expected 11%, and FPL Group (FPL), a utility, also surprised us with a 6% increase.
In addition to these companies in the essential services sector, there were two additional recent hikes among our holdings. Financial giant Chubb (CB) raised its dividend over 6%, and Praxair (PX) in the materials sector raised its dividend nearly 7%.
You probably did not hear much about these hikes and that makes them even more significant. In this environment, dividend hikes are not being rewarded. Thus, these companies are raising their dividends for two very solid reasons: 1. Their earnings are growing and they are confident enough in their prospects, even in a slow economy, that they are free to increase their dividends; 2. Almost all of the companies mentioned here have long histories of increasing their dividends. It is in their culture.
These are the kinds of companies we prize. They are in solid businesses that produce free cash flows from which they can pay dividends if they choose; they possess a track record of being willing to share their financial successes with their shareholders; and they are confident enough with the unfolding events of the day to raise dividends, even if no one cares but their shareholders.
Showing posts with label stocks. Show all posts
Showing posts with label stocks. Show all posts
Monday, March 2, 2009
Wednesday, February 4, 2009
February 2009 Dividend Paying Stocks
One way that you can earn very high returns is utilizing a technique called 'buying dividends'. Buying dividends is the process of buying a stock just before it goes ex-dividend and selling it shortly after the ex-dividend date at the same [or at a higher] price as the cost price. The ex-dividend date is the date after which a buyer of the stock is no longer entitled to the dividend. In other words, if an investor purchases a stock on or after the ex-dividend date, the investor will not receive the dividend; however, if the stock is purchased prior to the ex-dividend date, the investor will receive the dividend on what is called the payment date.
Sometimes you can sell the stock on the ex-dividend date, sometimes you have to hold the stock for a few days, and sometimes you have to hold the stock for a few weeks in order to sell the stock at what you paid or higher. In other words, this technique doesn't always work. But if it is a stock worth holding for the long term, what do you have to lose?
AGN - 02-18 - .04
AIZ - 02-19 - .14
AXB - 02-11 - .32
CPLP - 02-06 - 1.05
CR - 02-25 - .20
GS - 02-20 - .47
HRZ - 02-25 - .11
IGTE - 02-25 - .11
JNJ - 02-20 - .46
MAIN - 02-18 - .13
MCO - 02-18 - .10
MHP - 02/23 - .23
MMLP - 02-04 - .75
NMM - 02-05 - .40
NSC - 02-04 - .34
PCAR - 02-17 - .18
PFE - 02-04 - .32
TDW - 02-27 - .25
TGT - 02-18 - .16
UHS - 02-26 - .08
Sometimes you can sell the stock on the ex-dividend date, sometimes you have to hold the stock for a few days, and sometimes you have to hold the stock for a few weeks in order to sell the stock at what you paid or higher. In other words, this technique doesn't always work. But if it is a stock worth holding for the long term, what do you have to lose?
AGN - 02-18 - .04
AIZ - 02-19 - .14
AXB - 02-11 - .32
CPLP - 02-06 - 1.05
CR - 02-25 - .20
GS - 02-20 - .47
HRZ - 02-25 - .11
IGTE - 02-25 - .11
JNJ - 02-20 - .46
MAIN - 02-18 - .13
MCO - 02-18 - .10
MHP - 02/23 - .23
MMLP - 02-04 - .75
NMM - 02-05 - .40
NSC - 02-04 - .34
PCAR - 02-17 - .18
PFE - 02-04 - .32
TDW - 02-27 - .25
TGT - 02-18 - .16
UHS - 02-26 - .08
Friday, January 23, 2009
Do You Want Passive Income?
List of 6 Stocks Paying Dividends
Add these stocks to your Watch List. The market is down and dividend stocks are at bargain prices.
City National (CYN) declared a quarterly cash dividend of 25 cents per share, down from 48 cents it had previously paid. This stock once sold for $71.50 and recently closed at $32.99.
Federated Investors Inc (FII) said it will pay a quarterly dividend of 24 cents per share next month to shareholders of record on Feb. 6th. Federated Investors paid a special dividend of $2.76 in September. This stock once sold for $45.01 and recently closed at $19.48.
Heritage financial (HBOS) declared a quarterly cash dividend of $.08 per share from $.07 per share paid last year. The dividend would be payable on February 20, 2009 to shareholders of record as of February 6, 2009. This stock once sold for $12.99 and recently closed at $8.40.
Southern Community Financial Corporation (SCMF) announced that its Board of Directors, at its regular meeting on January 21, 2009, declared a quarterly cash dividend of four cents (.04) per share on the Corporation's common stock. The dividend is payable on February 27, 2009 to shareholders of record as of the close of business on February 13, 2009. This is the Corporation's sixteenth consecutive quarterly dividend, following its former practice of annual cash dividends. This stock once sold for $7.89 and recently closed at $3.87.
Sun Trust (STI) said it has cut its quarterly dividend to 10 cents a share from 54 cents a share until the economic environment and earnings outlook improve. The back-to-back dividend cuts are the first in recent memory for the regional bank. This stock once sold for $70.00 and recently closed at $14.97.
Wells Financial Corp (WEFP) declared a $.26 per share cash dividend, payable on February 24, 2009 to shareholders of record on February 10, 2009. This is the thirteenth consecutive quarter that the Company has paid a $.26 dividend.
Add these stocks to your Watch List. The market is down and dividend stocks are at bargain prices.
City National (CYN) declared a quarterly cash dividend of 25 cents per share, down from 48 cents it had previously paid. This stock once sold for $71.50 and recently closed at $32.99.
Federated Investors Inc (FII) said it will pay a quarterly dividend of 24 cents per share next month to shareholders of record on Feb. 6th. Federated Investors paid a special dividend of $2.76 in September. This stock once sold for $45.01 and recently closed at $19.48.
Heritage financial (HBOS) declared a quarterly cash dividend of $.08 per share from $.07 per share paid last year. The dividend would be payable on February 20, 2009 to shareholders of record as of February 6, 2009. This stock once sold for $12.99 and recently closed at $8.40.
Southern Community Financial Corporation (SCMF) announced that its Board of Directors, at its regular meeting on January 21, 2009, declared a quarterly cash dividend of four cents (.04) per share on the Corporation's common stock. The dividend is payable on February 27, 2009 to shareholders of record as of the close of business on February 13, 2009. This is the Corporation's sixteenth consecutive quarterly dividend, following its former practice of annual cash dividends. This stock once sold for $7.89 and recently closed at $3.87.
Sun Trust (STI) said it has cut its quarterly dividend to 10 cents a share from 54 cents a share until the economic environment and earnings outlook improve. The back-to-back dividend cuts are the first in recent memory for the regional bank. This stock once sold for $70.00 and recently closed at $14.97.
Wells Financial Corp (WEFP) declared a $.26 per share cash dividend, payable on February 24, 2009 to shareholders of record on February 10, 2009. This is the thirteenth consecutive quarter that the Company has paid a $.26 dividend.
Monday, January 19, 2009
Personal Finance - What They Don't Teach You In School
Personal finance looks at how your money and future is managed.
Personal finance, by definition, is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
The Principles of Finance defined:
Finance is the set of activities dealing with the management of funds. More specifically, it is the decision of collection and use of funds. It is a branch of economics that studies the management of money and other assets.
Finance is also the science and art of determining if the funds of an organization are being used properly.
In fact, when you get right down to it, there are three broad types of income you can generate:
1. Earned Income
2. Portfolio Income
3. Passive Income
Any money you ever make (other than maybe winning the lottery or receiving an inheritance) will fall into one of these income categories. And each income category has its own set of benefits and drawbacks.
Earned Income
Earned income is any income that is generated by working. Your salary or money made from hourly employment (regardless of whether that salary or hourly income came from working for someone else or from your own “consulting”) is considered earned income.
Some activities that generate earned income include:
* Working a job
* Owning a small business
* Consulting
* Gambling
* Any other activity that pays based on time/effort spent
While earned income is the most common mechanism for making money, its obvious downside is that once you stop working, you stop making money. Additionally, because the amount of money that is made through earned income is directly proportional to the time and effort you spend working, it’s difficult for someone to make more earned income without either learning a new (or more valuable) skill or working longer hours. Additionally, earned income is taxed at a higher rate than any other type of income.
One huge benefit of earned income over the other income types is that you generally don’t need any startup capital in order to make earned income, which explains why most people rely on earned income from the start of their working life. In fact, earned income is a great way to start your investing career, as it allows you to save up cash that will help you generate the other two types of income…
Portfolio Income
Portfolio income is any income generated by selling an investment at a higher price than you paid for it. Some people refer to portfolio income as “capital gains,” because that’s how the money is taxed by the federal government.
Some activities that generate portfolio income include:
* Trading (buying/selling) Paper Assets — Paper assets refer to things like stocks, bonds, mutual funds, ETFs, CDs, T-bills, currencies or other types of futures/derivatives. Stock market investing is the most common generator of portfolio income
* Buying and Selling Real Estate (specifically the profit from the sale)
* Buying and Selling of any other Assets — Antiques or cars, for example, or other types of collectibles that have appreciated in value
Portfolio income certainly has some advantages over earned income. Once you have the knowledge and experience to generate portfolio income on a consistent basis, you can continually reap the benefits (compound your return) by reinvesting after each sale. Additionally, any portfolio assets held long-term are generally taxed at a lower rate.
Passive Income
Passive income is money you get from assets you have purchased or created. For example, if you were to buy a house and rent it out for more money than it costs you to pay your mortgage and other expenses, the profit you make would be considered passive income.
Some activities that generate passive income include:
* Rental Income from Real Estate
* Business Income (assuming it’s not earned based on amount of time/effort spent — that would be Earned Income)
* Creating and Selling Intellectual Property — Books, Patents, Internet Content, etc
* Affiliate or Multi-Level Marketing
* Dividends
There are some major benefits to passive income over the other two types of income:
* Passive income is generally recurring income; once the investment is made, and assuming it is a good investment, the income will continue to come in month-after-month or year-after-year, with little additional work by you. This means that you can essentially “retire” and still continue to grow your net worth.
* Investments that generate passive income usually allow the owners active control over the investment. For example, if you owned an apartment building or a corporation, you would have say in the day-to-day operations that would ultimately impact the success of your investment.
* Passive income investments often allow for the most favorable tax treatment. Corporations can use profits to invest in other passive investments (real estate, for example), and take tax deductions in the process. And real estate can be “traded” for larger real estate, with taxes deferred indefinitely.
* Because it is generally possible to closely approximate the return (or at least the risk) you can expect from passive investments, these investments can often be funded using borrowed money. For example, a good business plan can attract angel funding or venture capital money. And real estate can often be acquired with a small down payment (20% or less in some cases) with the majority of the money borrowed
As you might suspect from the above overview, many people consider passive income the holy grail of investing, and the key to long-term wealth.
Personal finance, by definition, is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
The Principles of Finance defined:
Finance is the set of activities dealing with the management of funds. More specifically, it is the decision of collection and use of funds. It is a branch of economics that studies the management of money and other assets.
Finance is also the science and art of determining if the funds of an organization are being used properly.
In fact, when you get right down to it, there are three broad types of income you can generate:
1. Earned Income
2. Portfolio Income
3. Passive Income
Any money you ever make (other than maybe winning the lottery or receiving an inheritance) will fall into one of these income categories. And each income category has its own set of benefits and drawbacks.
Earned Income
Earned income is any income that is generated by working. Your salary or money made from hourly employment (regardless of whether that salary or hourly income came from working for someone else or from your own “consulting”) is considered earned income.
Some activities that generate earned income include:
* Working a job
* Owning a small business
* Consulting
* Gambling
* Any other activity that pays based on time/effort spent
While earned income is the most common mechanism for making money, its obvious downside is that once you stop working, you stop making money. Additionally, because the amount of money that is made through earned income is directly proportional to the time and effort you spend working, it’s difficult for someone to make more earned income without either learning a new (or more valuable) skill or working longer hours. Additionally, earned income is taxed at a higher rate than any other type of income.
One huge benefit of earned income over the other income types is that you generally don’t need any startup capital in order to make earned income, which explains why most people rely on earned income from the start of their working life. In fact, earned income is a great way to start your investing career, as it allows you to save up cash that will help you generate the other two types of income…
Portfolio Income
Portfolio income is any income generated by selling an investment at a higher price than you paid for it. Some people refer to portfolio income as “capital gains,” because that’s how the money is taxed by the federal government.
Some activities that generate portfolio income include:
* Trading (buying/selling) Paper Assets — Paper assets refer to things like stocks, bonds, mutual funds, ETFs, CDs, T-bills, currencies or other types of futures/derivatives. Stock market investing is the most common generator of portfolio income
* Buying and Selling Real Estate (specifically the profit from the sale)
* Buying and Selling of any other Assets — Antiques or cars, for example, or other types of collectibles that have appreciated in value
Portfolio income certainly has some advantages over earned income. Once you have the knowledge and experience to generate portfolio income on a consistent basis, you can continually reap the benefits (compound your return) by reinvesting after each sale. Additionally, any portfolio assets held long-term are generally taxed at a lower rate.
Passive Income
Passive income is money you get from assets you have purchased or created. For example, if you were to buy a house and rent it out for more money than it costs you to pay your mortgage and other expenses, the profit you make would be considered passive income.
Some activities that generate passive income include:
* Rental Income from Real Estate
* Business Income (assuming it’s not earned based on amount of time/effort spent — that would be Earned Income)
* Creating and Selling Intellectual Property — Books, Patents, Internet Content, etc
* Affiliate or Multi-Level Marketing
* Dividends
There are some major benefits to passive income over the other two types of income:
* Passive income is generally recurring income; once the investment is made, and assuming it is a good investment, the income will continue to come in month-after-month or year-after-year, with little additional work by you. This means that you can essentially “retire” and still continue to grow your net worth.
* Investments that generate passive income usually allow the owners active control over the investment. For example, if you owned an apartment building or a corporation, you would have say in the day-to-day operations that would ultimately impact the success of your investment.
* Passive income investments often allow for the most favorable tax treatment. Corporations can use profits to invest in other passive investments (real estate, for example), and take tax deductions in the process. And real estate can be “traded” for larger real estate, with taxes deferred indefinitely.
* Because it is generally possible to closely approximate the return (or at least the risk) you can expect from passive investments, these investments can often be funded using borrowed money. For example, a good business plan can attract angel funding or venture capital money. And real estate can often be acquired with a small down payment (20% or less in some cases) with the majority of the money borrowed
As you might suspect from the above overview, many people consider passive income the holy grail of investing, and the key to long-term wealth.
Thursday, January 15, 2009
Marshall & Ilsley
>Company Name – Marshall & Ilsley
Ticker Symbol – MI
Date – January 15, 2009 - Closing price $7.93
Announcement - plans to cut 830 jobs, or 8% of its workforce, and would give no bonuses to its executives for 2008. It also reduced the annual cash retainer for its directors by 25% and slashed its quarterly dividend to 1 cent a share. Read Full Story
Marshall & Ilsley Corporation provides diversified financial services to corporate, institutional, government, and individual customers in the United States. Its Commercial Banking segment provides various commercial, corporate, and real estate banking products and services, including traditional commercial loans and lines of credit, letters of credit, asset-based lending, equipment financing, mezzanine financing, global trade and foreign exchange services, treasury management, and other financial services to middle market, corporate, and public sector customers, as well as secured and unsecured lines of credit, construction loans, and land acquisition and development loans for commercial real estate and correspondent banking markets.
The company’s Community Banking segment offers consumer and business banking products and services, including mortgages, home equity loan and lines, credit cards, student loans, personal lines of credit and term loans, demand deposit accounts, interest bearing transaction accounts, and time deposits, as well as commercial real estate construction loans, agricultural loans, and secured and unsecured lines and term loans.
Its Wealth Management segment provides asset management, trust, brokerage, life insurance, and advisory services. Marshall & Ilsley Corporation also offers derivative, currency conversion, and foreign exchange risk management services, as well as wholesale home equity consumer lending, indirect automobile financing, and affinity banking services.
As of March 11, 2008, it operated 193 offices in Wisconsin, 50 locations in Arizona, 32 offices in central Indiana; 31 offices along Florida's west coast and in central Florida; 14 offices in Kansas City and nearby communities, Missouri; 23 offices in metropolitan Minneapolis/St. Paul and 1 in Duluth, Minnesota; 1 office in Las Vegas, Nevada; and 17 offices in the greater St. Louis area, Missouri. The company was founded in 1847 and is headquartered in Milwaukee, Wisconsin.
Friday, January 9, 2009
A List of Dividend Paying Stocks
This list of dividend paying stocks is by no means a recommendation to buy.
Complete your independent research and analysis before purchasing.
Dividend Paying Stocks
Ticker Symbol
PLD
GGP
DDR
ACAS
SFI
MPG
SGLP
CPY
GKK
GNW
ALD
MMAB
FCH
LEE
MNI
MCGC
GNV
BGP
GBE
Things to look for when buying stock.
Dividend payments scheduled for the next 7 days
Complete your independent research and analysis before purchasing.
Dividend Paying Stocks
Ticker Symbol
PLD
GGP
DDR
ACAS
SFI
MPG
SGLP
CPY
GKK
GNW
ALD
MMAB
FCH
LEE
MNI
MCGC
GNV
BGP
GBE
Things to look for when buying stock.
Dividend payments scheduled for the next 7 days
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