Deutsche Bank analyst Binky Chadha sees the current environment in the market as being ideal for large increases in payouts -- especially buybacks -- as companies are seeing high levels of cash flows. The report from Deutsche Bank points out that analysts are expecting dividends at financial firms to increase by $30 billion or 100 percent once definitive capital requirements are set.
“Operating cash flow at over $1 trillion continues to run strong and is already at its previous peak but capex and payouts were cut 25 percent and 53 percent, respectively, from 2008 peak levels. As a result, corporates must increase spending by $250 billion to $300 billion annually on capex & payouts just to keep their cash mountains from growing further. The current spending pattern seems to be tracking the 2003-2004 period in which firms also significantly ramped up payouts and capex.”
Source: StreetInsider.com
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Billionaire Paul Singer has made a fortune shaking up tired businesses. And right now he has a new company in his crosshairs. In industry ci...
-
To live off the passive income from stocks, one of the important things to pay attention to is the company’s distribution policy. Nowadays, ...
-
Utility stocks feature plenty of steady cash flows and high dividends. It doesn’t matter so much what the economy is doing as people still n...
-
Whether you refresh your portfolio every five minutes or check it infrequently, like most investors you probably experience some level of st...
-
The problem is, finding high-quality dividend stocks isn't easy. That's because yield and risk tend to be correlated. In other words...
-
Usually, when a dividend yield is around 10%, it's due to concerns about its sustainability. However, that's not the case with this ...
-
Reinvesting your dividends is a great way to boost the long-term performance of your stock portfolio, but a history of regular payouts alone...
-
We're now three-fourths of the way through 2019, and it's certainly been an eventful year so far. Although the S&P 500 is up by ...
-
While cash flow can come from bond interest or interest from other types of investments, many income investors hone in on dividends. A divid...
-
If you review past articles on Income Investors, you might spot a common theme: the best-performing stocks are often those of quiet, unassum...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.