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.


There 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…

One 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…

There 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…

The 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,…

With the year soon coming to a close, an increasing number of firms are making special dividend payments to get ahead of the expected hike in taxes next year. This investment strategy to make special one-time dividend payments is a…

Ever since the beginning of June, when the stock market came out of its correction, there has been seesaw-trading action with three meaningful peaks and valleys in the S&P 500 Index. We’re now working on the fourth, and who knows…

The big banks have steadily recovered since the Lehman Brothers collapse in late 2008 that sent bank stocks in a punishing downward spiral, which inevitably required hundreds of billions of dollars in bailout funds from Uncle Sam to save the…

It really is the perfect environment for higher oil prices, which is both good and bad for the U.S. economy. Higher oil prices reflect a better economic outlook, as speculators bet on better gross domestic product (GDP) growth in the…

It’s my contention that the stock market is engaging in a slow process of topping out. The stock market usually likes to lead the economy and, while corporate earnings have been surprisingly strong ever since the financial crisis, this has…

If you haven’t heard already, dividend payments are going up. A number of large-cap companies recently announced dividend increases and it’s another positive trend for the stock market. We’ve got low-interest-rate certainty, improving economic news and stock market leadership from…

Large-cap companies are the way to go if you want to be a buyer in this stock market and those with a track record of increasing dividend payments have the advantage. We’ve had some revenue and earnings warnings from some…

There’s nothing I love more than a good, old-fashioned, American company success story…especially since they are so are to come by these days. Yesterday, Ford Motor Co. (NYSE/F), the number two U.S. automaker, announced that it was reinstating its dividend…

Is this an alarming picture? The government has thrown trillions of dollars at saving the economy. Bernanke’s Fed has pulled rabbit after rabbit out of the hat to jump start the economy, keeping interest rates artificially low and significantly increasing…