Mergers and Acquisitions Hit Record High
Posted on April 10, 2015 | Dividend Investing
We have commented on the fact that companies have shown an increase in cash balances over the last year. In fact, cash and short-term investments in the S&P 500 (ex-financials) settled at a record high at the end of 2014. The majority of companies are using this additional cash to increase share buybacks and dividend payments, which have also hit record levels. So far this year what we are seeing is an increase in mergers and acquisitions (M&A).
Marching Out of First Quarter, Plus the Monthly Report
Posted on April 2, 2015 | Dividend Investing
After announcing portfolio changes during each of the previous three months, we have none to announce for April. There were simply few companies passing our minimum criteria for consideration, and none that were attractive enough to warrant a portfolio change. Plus given our goal of limiting transactions to one or none per month, we didn’t want to make a change simply for the sake of change. We’d rather stay selective and have low turnover than the other way around.
A Bright Spot This Week: Record Dividends
Posted on March 27, 2015 | Dividend Investing
Markets took a turn for the worse this week (narrowly escaping a five-day decline), but how much of it is due to news versus noise? We are currently heading into a quiet time period: The end of the quarter is near, and the next Fed meeting won’t be held until late April. In time periods such as these, we see that even fairly insignificant news items can move the market. On top of skittish investors, this week marked one of the lowest-liquidity weeks of the year.
Investors Are Yellen’ About the Fed Minutes
Posted on March 20, 2015 | Dividend Investing
This time last year, U.S. Federal Reserve chair Janet Yellen asserted that the central bank would no longer use unemployment as a target to determine interest rates. For well over a year, there has been speculation as to when the first rate hike would occur.
Our New Addition Announces Dividend Increase and Share Buybacks
Posted on March 13, 2015 | Dividend Investing
We are happy to see the large return of capital to shareholders so soon after its addition to the DI portfolio. While our preference is for dividend increases over buybacks, we acknowledge that there can be advantages to buybacks.
Changes to the Dow Jones Industrial Average and the DI Portfolio
Posted on March 6, 2015 | Dividend Investing
This week we are removing one of our original positions in the DI portfolio, United Technologies (UTX), and replacing it with Qualcomm Inc. (QCOM). Qualcomm develops digital communication technology and operates in the semiconductor industry.
February Dividends Close to Setting Records
Posted on February 27, 2015 | Dividend Investing
With fourth-quarter earnings season winding down (only about 10 members of the S&P 500 index are scheduled to report earnings next week), we thought it would be interesting to see how companies have fared overall.
Why Are Utility Stocks Powering Down?
Posted on February 20, 2015 | Dividend Investing
We cannot always identify a reason why a particular stock’s price has risen or fallen over a short-term period, but at times we do see patterns.
Don’t Judge Apple’s Freshness by its Record Market Cap
Posted on February 13, 2015 | Dividend Investing
This week, Apple Inc. (AAPL) achieved what no other publicly traded corporation has ever done before: Its market capitalization reached and rose above $700 billion.
Buying Growth Cheaply and Reinvesting; plus the February Monthly Report
Posted on February 6, 2015 | Dividend Investing
We are buying growth on the cheap this week with the new addition to the DI