There has been a lot of concern about the security of financial stocks' dividends lately. And I can see why ...
According to the latest data from S&P, 16 companies have cut their dividends so far this year vs. 12 for the FIVE-YEAR period from 2003 through 2007. Even more telling is that fact that five of the 12 cuts over that period came in the fouth-quarter of 2007, as the credit crunch started happening.
Am I concerned about more cuts in the future? Of course. And there's never any way to know with certainty that even the companies that are able to continue paying will choose to do so.
Still, based on comments from executives and balance sheet strength, I continue to believe that the very strongest companies in the space have the desire and means to maintain their payments.
Posted Monday, June 16, 2008 by
Nilus Mattive
Two weeks ago, I wrote an article in Money and Markets talking about Bud's surge on takeover rumors. And I pointed out that InBev's rumored buyout price of $65 a share meant there was still plenty of upside ahead.
Since then, BUD stock has climbed to $61 a share, good for another 5% profit. Not too shabby given the broad market's performance over the same period.
There are still some hurdles to the deal -- inlcuding a strong backlash from U.S. beer fans -- so this may be as far as the shares go for a while.
Still, it's nice to see a solid dividend stock tacking on a little capital apprecation in a flagging market.
Since then, BUD stock has climbed to $61 a share, good for another 5% profit. Not too shabby given the broad market's performance over the same period.
There are still some hurdles to the deal -- inlcuding a strong backlash from U.S. beer fans -- so this may be as far as the shares go for a while.
Still, it's nice to see a solid dividend stock tacking on a little capital apprecation in a flagging market.
Posted Wednesday, April 30, 2008 by
Nilus Mattive
Just wanted to point out that one of my favorite Asian dividend stocks has been catching fire lately. Huaneng Power is up another 5% today, after posting a 14% one-day gain last Wednesday.
It looks to me like the shares have bottomed out and could easily return to the $40 level, especially on positive news related to coal prices or permission from the Beijing to hike utility prices.
Meanwhile, investors are getting a 5%+ yield from those dividend checks!
It looks to me like the shares have bottomed out and could easily return to the $40 level, especially on positive news related to coal prices or permission from the Beijing to hike utility prices.
Meanwhile, investors are getting a 5%+ yield from those dividend checks!
