JNJ Stock: Could Johnson & Johnson Spike Its Dividends?

JNJ Stock a Top Dividend Name for 2016 and Beyond Johnson & Johnson (NYSE:JNJ) is an old stalwart, known for being one of the most reliable stocks for dividend investors. It is among an elite class of companies that have increased their dividend payouts every year for at least 25 years. They’re known as the “Dividend Aristocrats.” In the case…

Suncor Energy Inc. (NYSE:SU): This Stock is Gushing Dividends

Plummeting oil prices have drastically altered the landscape for the energy industry, leaving some industry stalwarts struggling to catch up. But hidden strengths could help this jeered energy giant back to profitable heights, making a fortune for shareholders in the process. I’m talking about Suncor Energy Inc. (NYSE:SU). You might be wondering why I would recommend investing in energy stocks…

HSBC to Cut 50,000 Jobs in Quest for Higher Dividends

HSBC Holdings plc (NYSE/HSBC) announces that it would reduce its head count by up to 50,000 as part of a global overhaul to improve the profitability of its sprawling operations. HSBC was founded in 1865 to finance trade between Asia and the West. Today, HSBC is one of the world’s largest banking and financial service organizations, serving some 51 million…

Buybacks, Dividends, Stock Splits: Business Is Getting Better for This Must-Watch Stock

There are a lot of stocks bouncing off their all-time record-highs and Union Pacific Corporation (UNP) is one of them. Not surprisingly, the company just announced a two-for-one stock split with the stock dividend, effective June 6, 2014 to shareholders of record on May 27, 2014. The last time Union Pacific split its shares was in May of 2008, also…

Reckless New Fad: Companies Raise Money to Buy Back Stock, Pay Dividends

Last Thursday, the CEO of DIRECTV (NASDAQ/DTV) said “…we are pleased to announce a share repurchase program of $3.5 billion. This repurchase program reflects our strong balance sheet and confidence in continued strong DIRECTV revenue, earnings and free cash flow growth, as well as our belief that our stock is far below our intrinsic value.” (Source: “DIRECTV Announces Fourth Quarter…

Big Banks Only Good for Dividends?

Back in early August, I turned negative on the big banks and suggested that a bearish double-top was forming on the Bank Index chart. At that time, the Bank Index was trading at just over 65, as you can see on the chart below. (Read “Four Important Stock Charts Showing Warning Signs.”) In early October, the Bank Index fell to…

Consistency, Rising Dividends Make This Benchmark a Possible Winner for Savers

Finding consistently growing companies has been and continues to be a tough thing with the world’s developed economies barely growing. From the investor’s perspective, I think consistency, both in terms of corporate financial growth and stock market performance, is absolutely golden. This is especially the case for investors who aren’t actively trading and are perhaps saving for retirement or are…

Why Investors Should Look to Small-Caps for Dividends

If you like taking some risk but also love the idea of making some good price appreciation, then read on, as there are alternative ways of earning dividend income without having to buy General Electric Company (NYSE/GE) or The Procter & Gamble Company (NYSE/PG). Recently, I talked about some smaller dividend paying stocks, such as Och-Ziff Capital Management Group LLC…

Strong Cash Flow, Increasing Dividends Make This Old Economy Stock Attractive

Blue chips across the board have been taking a break, along with the rest of the stock market. But in my mind, their leadership remains intact, and so does the performance of the Dow Jones Transportation Average. This index recently broke below its 50-day simple moving average (MA), but this is very normal and not a trendsetting event. Many component…

Rampant Cash Hoarding Yields Strong Dividends, but Hampers Growth

The seesaw action in both the bond and stock markets is emblematic of this overly monetized world. With all the cash sloshing around, and the huge cash balances swelling at big U.S. corporations, the solution to economic mediocrity is clear: get corporations to spend on new business operations. But so far, this has proven to be very difficult. It’s just…

Dividends, Buybacks, and Spin-Offs—That’s All There Really Is

Every once in a while, the stock market gives you a gift—rather, a company trading on the stock market decides to make a division a spin-off, unleashing value for shareholders. It doesn’t happen very often, but when it does, it usually turns out to be a big gift for the owners. There were two big spin-offs this year, and one…

Dividends from Blue Chips the Only Game in Town This Year

On the subject of blue chips, I think dividends are going to account for a very large portion of investment returns from the stock market this year. I’m hopeful for the U.S. economy in its recovery, but whatever transpires this year, I just don’t see real gross domestic product (GDP) hitting over three percent, with the eurozone in recession and…

Dividends Going Up Because Companies Don’t Want to Invest

There is now more evidence that companies with huge cash hoards are returning the money to shareholders, rather than making any bold new investments themselves. Last Friday, General Electric Company (NYSE/GE) announced that it would increase its quarterly dividend to $0.19 a share, up from $0.17, and it authorized an increase in the amount of shares it can repurchase to…

A Top Stock with Increasing Dividends and Record Profits

It’s pretty clear that investors have stepped away from the stock market, either sitting on the sidelines or not participating at all in new positions. This market looks tired, directionless, and generally displeased with the current state of things. The earnings picture is modest, but corporate balance sheets are strong. There’s the potential for a new business cycle, but a…

Dividends Income: From Bubbles to Crashes, It Always Wins in the End

In recent history, without dividends, stock market investors would generally be losing money. And this doesn’t include losses relative to the inflation rate. It’s been such a difficult stock market for the last decade, and the extreme volatility serves to illustrate just how risky equity securities can be. In the 80s and the 90s, the best bet in town was…

Dividends and Earnings Make Stocks Very Fairly Priced

There may not be a lot of top-line growth out there. If gross domestic product (GDP) isn’t growing, then how can corporate earnings? But there is decent value in the stock market and a lot of the value is available from solid, dividend paying companies. Consider, for example, Intel Corporation (NASDAQ/INTC, $26.00), which is trading about three points below an…

Event Trading on Dividends—This Is the Market for It

Because the Federal Reserve created an environment of artificially low interest rates, investors both large and small are craving income. You can’t get any real return from cash and the opportunities in bonds just barely cover the inflation rate and have long durations. Real estate investment trusts (REITs) can yield a greater amount of income, but a lot of investors…

Dividends: The Only Way to
Keep the Mini Bull Market Alive

I think this year’s bull market is still alive, but it will take good corporate earnings and visibility to carry it forward. We’ve had a really good run up until now and the current price consolidation is not unexpected. I want to reiterate that the stock market is still very fraught with risks that are based on fragility in the…

Dividends

A dividend is the payment that a company distributes to its shareholders as a percent of earnings. Management can decide whether to pay a dividend, how much it is, and the frequency of payments. Dividends are often distributed quarterly and are quoted as the amount of dividend per share. Companies that are growing fast tend not to issue a dividend,…

Expect Big Increases to Dividends
Over the Next Few Quarters

There’s been a lot of news related to increased dividends and this is a very positive sign for the stock market. Even if there aren’t big expectations for capital gains from stocks, institutional investors are buying companies that announce higher dividends for shareholders. Dividend news from JPMorgan Chase & Co. (NYSE/JPM) was icing on the cake. This sector has been…