Will Dividend Increases Follow an Increase in Stock Buybacks?

As I noted in an earlier post, recently released data by Standard & Poor's shows companies have increased their stock buyback activity in the 2nd quarter of 2010. S&P reported a YOY 220% increase in Q2 2010 buybacks. During this same time period, dividend increases have equaled 5.9%. Given this improved buyback activity at HORAN Capital Advisors, we believe companies that exhibit stong cash flow will also begin rewarding their shareholders with increased dividend payments as the economy gains a firmer footing (click on chart to enlarge). From The Blog of HORAN Capital Advisors... more

9 Dividend Stocks Giving Shareholders a Raise

When evaluating a company as a potential income investment you look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared to alternative “safe” investments. The advantages dividend stocks have over “safe” investments are potential capital appreciation and dividend growth. Not only are your earnings compounding, but the rate of earnings is growing.... more

Microsoft Makes a Dividend Splash

Source: ActingLikeAnimals.com I’ve talked about growing profits and cash piles for a while now (read more), but at some point investors and board members get restless and demand action (Steve Jobs has not yet). The most recent blue-chip company to make a splash, when it comes to capital management, is Microsoft Corp. (MSFT), which just announced a significant +23% increase in its dividend in conjunction with $4.75 billion in debt offerings. These capital structure changes still leave plenty of room for additional share repurchases and acquisitions. Debt Offering - Are You Sure?... more

3 Fat Payouts From Market Leaders

Many investors lost money over the past couple of years, but the endowments at prestigious universities suffered even worse. Investment performance at Harvard and Yale "badly trailed" the results at the average college, as The Wall Street Journal so delicately put it. I'm shocked -- but not because of these endowments' lackluster returns. With exotic strategies and illiquid investments, Princeton registered a 24% loss in 2009, while Cornell took a 26% hit, and Harvard suffered a 27% drop. Compare those losses to the 18% drop for the median large endowment. Worse yet, many such institutions fund their operating expenses with the capital from endowments like these. If they don't generate capital gains, they may be forced to cut budgets and slash salaries.... more

Secure Your Future With These Stocks

Many investors lost money over the past couple of years, but the endowments at prestigious universities suffered even worse. Investment performance at Harvard and Yale "badly trailed" the results at the average college, as The Wall Street Journal so delicately put it. I'm shocked -- but not because of these endowments' lackluster returns. With exotic strategies and illiquid investments, Princeton registered a 24% loss in 2009, while Cornell took a 26% hit, and Harvard suffered a 27% drop. Compare those losses to the 18% drop for the median large endowment. Worse yet, many such institutions fund their operating expenses with the capital from endowments like these. If they don't generate capital gains, they may be forced to cut budgets and slash salaries.... more

High-Tech and Dividends: A Tasty Combination

We tend to assume that we have to make a choice in investing: Either opt for a powerful grower, perhaps one in the dynamic technology-heavy realm, or choose a steady, dependable dividend payer. There's some truth to that, but less than you think. Better still, many technology companies are poised to be strong dividend payers. Yes, many big names currently offer no dividend at all, such as Oracle (Nasdaq: ORCL) and Yahoo!. But some tech-focused outfits do offer significant dividends. Intel (Nasdaq: INTC), for example, offers not only the chance to profit from its dominant chip business and its expansion into the wireless industry via its Infineon acquisition, but also a dividend yield of 3.3%. (It has increased that dividend by an annual average of more than 15% over the past five years,... more

3 Hearty Dividends From Solid Stocks

Many investors lost money over the past couple of years, but the endowments at prestigious universities suffered even worse. Investment performance at Harvard and Yale "badly trailed" the results at the average college, as The Wall Street Journal so delicately put it. I'm shocked -- but not because of these endowments' lackluster returns. With exotic strategies and illiquid investments, Princeton registered a 24% loss in 2009, while Cornell took a 26% hit, and Harvard suffered a 27% drop. Compare those losses to the 18% drop for the median large endowment. Worse yet, many such institutions fund their operating expenses with the capital from endowments like these. If they don't generate capital gains, they may be forced to cut budgets and slash salaries.... more

Does Big Borrowing Maximize Value?

When sources reported that Microsoft (Nasdaq: MSFT) was mulling a debt offering to launch a massive share buyback program and possible dividend increase, tongues started wagging that this was a smart, strategic move. It wouldn't borrow so much that it would jeopardize its AAA credit rating. But that got me thinking: Does borrowing money to fund share repurchases and dividend payments really make sense? Robbing Peter to pay Paul?With interest rates as low as they are, debt is a pretty attractive investment right now. Home Depot (NYSE: HD) and Dell (Nasdaq: DELL) just finished issuing bonds this month, and according to an analysis by Thomson Reuters, corporations issued $33.7 billion in investment grade debt for the week ending Sept. 10 -- a two-year high -- with Hewlett-Packard (NYSE:... more

Are These Dividend Stocks Just Right for Investors?

Over the miserable past decade for stocks, there was a corner of the market where investors stood a better chance of finding winners. What corner was that? Given the title of this article, you can probably guess that the correct answer is "dividend stocks."... more

Raytheon Co. (RTN) Declares $0.375 Quarterly Dividend; 3.3% Yield

Raytheon Company (NYSE: RTN) announced today that its Board of Directors has declared a quarterly cash dividend of $0.375 per share of common stock, $1.50 annualized. The cash dividend is payable on November 4, 2010 to shareholders of record as of the close of business on October 5, 2010. The ex-dividend date is October 1, 2010. Yield on the dividend is 3.3%.... more