"Balance-sheet management has been stellar over the past two years," Jonathan Golub, the US equities strategist for Zurich-based UBS AG, wrote in a note to clients on March 29. "We continue to like high dividend yielding stocks as alternatives to money-market and short-duration bond funds."
More than 800 dividend decreases were announced in 2009, a year after the S&P 500 plunged 38 per cent for its worst annual performance since the 1930s. The January-to-March period in 2009 was the worst quarter ever for S&P 500 dividends with $US38.7 billion in reductions, according to S&P. The stock index sank to a 12-year low on March 9, 2009.
Billions in Cash
As the economy rebounded, cash balances rose to a record $US831.2 billion at the end of the fourth quarter, according to S&P data. One company cut its dividend and another suspended it during the first three months of 2010, the fewest since 2006, according to S&P.
"Dividends are emblematic of corporate strength," Jack Ablin, chief investment officer at Chicago-based Harris Private Bank, who oversees $US55 million, said in a Bloomberg Television interview. "It is remarkable to me the level of cash on corporate balance sheets. It's certainly a strong vote of confidence for corporate America right now."
Bloomberg
http://www.smh.com.au/business/world-business/dividend-slump-ends-as-record-cash-lifts-payouts-20100429-tssi.html
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment