America's large companies are wallowing in $1.2 trillion of cash, a record. Mutual fund managers can't be pleased about that, Michael Thompson, a managing director at Standard & Poor's, said earlier this week on CNBC. Part of their job is to decide when to take risk and when to seek safety. The corporate cash effectively forces them to remain less invested than they might like.
Expect heavyweight investors to increase their pressure on companies to use excess cash, or else part with it. The number of special dividends, whereby companies pay lump sums without signaling more payments to come, has recently nearly doubled from a year ago. Year-to-date, nearly half of S&P 500 members have taken positive action on regular dividends, either initiating or boosting them, versus just four negative actions. The ratio is 58-to-1 in favor of positive actions, up from about 3-to-1 over the past two years.
Source: SmartMoney
Related Articles:
Stocks With 3% and Rising Dividends
Posted by D4L | Tuesday, December 07, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Despite all that work, its valuation remains dirt cheap. That's a big reason why its distribution currently yields more than 9% despite ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.