BP Investments and the Role of Ethics and Risk Management

The current situation with BP (BP) raises a bevy of thorny questions, not the least of which is how pensions and other types of institutional investors should deal with the asset allocation fallout.Let's start with the facts about institutional ownership of BP. According to Yahoo Finance and as excerpted in the table below, over 1,000 institutions owned stock in BP as of late March 2010. A relatively high dividend payout rate and dividend yield likely held great appeal for organizations seeking stability.... more

Jos. A Bank's New Dividend Move

Joe Banks (JOSB) announced today a 50% stock dividend. In other words, that's a three-for-stock stock split. If you own 200 shares, you'll get another 100 and you can expect the share price to drop by 33% (yes, a 50% increase followed by a 33% drop brings you back to where you started). Ultimately, a stock split doesn't mean anything to shareholder value. Companies say they do it to increase liquidity but that didn't hold back Berkshire Hathaway (BRK.A) for many years. In reality, these are nice press releases companies like to put out throughout the year, and JOSB has done well.... more

Should Dividend Investors Chase High Yields?

Many novice investors get into the world of dividend investing because of the belief that it is possible to generate double digit current yields. They purchase these securities in pursuit of current income, only to see these distributions cut after a few months. The truth is that few companies can afford to pay high dividends, unless they are pass-through entities such as master limited partnerships or real estate investment trusts to name a few.I have highlighted the top 20 yielding stocks in the S&P 500 index below:... more

Ten Stocks Initiating Dividends in 2010

2010 has become the year of the dividend. Last year, 68 of the S&P 500 stocks cut their dividends and another 10 stocks completely suspended their dividend payments. Nearly midway through 2010, only a single S&P 500 stock has cut their dividend (Valero Energy) and only one stock suspended their dividend payments (Tesoro). While news of BP’s dividend cut has captured the majority of headlines in recent weeks, 2010 could end up being a banner year for investors. Here is a look at the 10 stocks initiating dividends in 2010.... more

Why You Should Consider Dividends

Investors often ask: "What are the advantages of a dividend stock?" Senior analyst Anand Chokkavelu (who has given his thoughts on the subject here) sat down with James Early, lead advisor of The Motley Fool's dividend investing service, Income Investor, to discuss the question.... more

The One Thing Beginning Dividend Investors Overlook

We recently held a roundtable on the best dividend stocks for beginners.It was well received, so senior analyst Anand Chokkavelu sat down with James Early, the lead advisor of the Motley Fool's dividend investing service, Income Investor, to dig further.... more

5 Dividend Stocks Working Even When I'm Not

This past week I have been vacationing more than 1,500 miles from my home. As with most vacations, I have not done much work this week. However, a quick check of my brokerage account shows that my dividend stocks have been very busy. It is nice to know my income portfolio never takes a day off. What's even better is the portfolio is frequently getting a raise through higher cash dividend payments. Here are several select companies that have recently provided their shareholders a raise with increased cash dividends:... more

7 ETFs for Investors Mourning the Death of BP's Dividend

Almost two months after an offshore explosion sparked one of the worst environmental disasters in U.S. history, the White House has stepped in to ensure that British oil giant BP (NYSE: BP) is held accountable for cleanup efforts and the economic damage done (see Five ETFs To Watch Ahead of Obama's Oval Office Speech). With public outrage toward the oil industry reaching new highs, BP has had little leverage to resist the measures proposed by lawmakers; BP hastily agreed to set up a $20 billion escrow fund to pay claims and suspend at least three dividends. The company hopes to resume its dividend payments in 2011, but it remains to be seen if that will be a politically or financially viable option.... more

BP's Dividend: You Don't Know the Worst of It

Two days ago, under pressure from the White House, BP (NYSE: BP) announced that it was cancelling its first-quarter dividend and suspending dividends until at least 2011. That's disappointing news for shareholders who rely on that income – BP is widely owned by pension funds in the U.K. and the U.S. Unfortunately, the bad news doesn't end there. There is reason to believe that once BP resumes dividend payouts, the dividend amount will be significantly lower than it has been over the last two years. In fact, the market expects that BP's 2011 dividends will total just $1.26 – nearly a two-thirds decline from the $3.36 it paid out last year.... more

4 Dividend Stocks Showing You the Money

Last year brought us a lot of dividend slashing, but more and more companies are committing themselves to sending out money to their shareholders in 2010. Motley Fool Income Investor readers certainly appreciate that trend, so let's take a closer look at some of the companies that inched their payouts higher this past week. We can start with Casey's General Stores (Nasdaq: CASY). The convenience-store operator is juicing up its quarterly dividend by 18% to $0.10 a share. It comes at a perfect time, as Casey's is trying to rebuff a hostile takeover bid. Sweetening the pot for shareholders may make them more patient -- and loyal.... more