Dividend Payments

When a company makes a profit, it can distribute some of these funds as dividend payments. Dividend payments are one of three action steps a company can take with its profits to benefit a shareholder; the other two include buying back stock and re-investing the funds in the company. When interest rates are low, many investors look to dividend payments for a source of income. One has to be careful that the dividend payments are sustainable over a long period of time.

“Need to Know” Info About the Coming Retrenchment

By Wednesday, November 27, 2013

equity marketThere are lots of companies but very few stocks I like in this stock market, because stocks have already gone up in value so tremendously.

Countless large-caps provided excellent returns this year, and many of them are old brands that still offer meaningful dividend yields. What’s transpired with the equity market this year has be… Read More

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

By Thursday, September 5, 2013

Increasing Dividends Make This Old Economy Stock AttractiveBlue 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. … Read More

Equity Market Super Stock Adding Up to Solid Returns

By Friday, June 7, 2013

Equity Market Super Stock Adding Up to Solid ReturnsOne company I consistently like for long-term investors looking for dividend payments is PepsiCo, Inc. (NYSE/PEP).

This is the kind of company that can be put into retirement accounts and held for long periods of time with dividend reinvestment.

The equity market has been very kind to PepsiCo since the beginning of this year. Like ma… Read More

Earnings Season Is Here; Will the Numbers Be Kind?

By Wednesday, January 9, 2013

Earnings SeasonThere is positive momentum going into fourth-quarter earnings season. The earnings results we’ve had so far from brand-name large-caps are encouraging. We can’t forget, however, that expectations and consensus estimates have come down a lot, especially because of third-quarter earnings results. I think the stock market w… Read More

My Near-Term Outlook for the Market as We Start 2013

By Thursday, January 3, 2013

Outlook for the Market as We Start 2013The S&P 500 had a pretty good year in 2012, up approximately 11.5% not including dividends. But, as is the norm in the current stock market, trading action remained choppy without any real trend.

The S&P 500 began 2012 strongly, rising consistently until May, when the index gave up all its gains. Then, with equal fervor, the S&… Read More