Is It Leading or Lagging?

Investors have been looking to recent economic indicators as a means of deciphering where the economy may be headed. Although we don’t particularly consider macroeconomic factors as part of our quantitative model, it is useful to understand what they mean and how investors perceive specific figures. Read more »  

 

What Does “When Issued” Mean?

Securities trade on a when-issued basis when a corporate change has been announced and authorized, but the new shares have not yet issued. The when-issued approach allows companies to seek a smooth transition to post-spin-off trading of the shares of the parent and the spin-off companies by establishing multiple listings… Read more »  

 

Deals, Spin-Offs

There continues to be a high amount of merger and acquisition (M&A) activity occurring. Thomson Reuters released a note this morning calculating U.S. deal-making as totaling $775.8 billion year-to-date. To put the number in perspective, this is a 47% increase over the same period last year. Read more »  

 

Stepping Into the Quiet Period

This week, Deere & Company (DE) declared a quarterly dividend that was the same as the prior quarter’s payout. In 2014, Deere increased its dividend in May; in 2012 and 2013, the company bumped its payout in February. Whether February or May, the company has failed to increase its payment when expected for 2015. It’s…

 

Important Dividend Dates You Should Know

There are four dates that are important for dividend investors. The first is the declaration date. The declaration date is the date that the board of directors announces a dividend. The statement typically includes the size of the dividend, the date of record and the payment date (described below). Once the dividend has been declared,…

 

Favorable Earnings Reported by 77% of DI Companies Thus Far

As we arrive at mid-May (although the temperature feels far from that here in Chicago), so far 91% of companies in the S&P 500 index have reported quarterly earnings. According to Thomson Reuters, the blended (reported and estimated) first-quarter 2015 quarterly earnings growth for S&P 500 constituents is 2.1%. On a sector basis, health care…

 

Two Dividend Increases, Plus the Monthly Report

This week markets reacted to comments from Federal Reserve Chair Janet Yellen that equity valuations are “quite high.” On top of Yellen’s comments, an upbeat U.S. service-industry release and a rally in crude oil prices sent the 10-year U.S. Treasury yield soaring to its highest level in two months, while Treasury bond prices dropped for…

 

Don’t Sell in May and Don’t Go Away

This week was full of economic reports and earnings releases. Now we wait to see if investors will follow the adage “sell in May and go away.” U.S. investors typically sell their stocks in May and stay away from the market until the end of October. S&P Capital IQ’s U.S. equity strategist, Sam Stovall, blames…

 

Eleven DI Companies Report Quarterly Earnings

The NASDAQ Composite index surpassed its all-time closing high for the first time in 15 years on Thursday, posting a close above the 5,048.62 reached at the height of the dot-com bubble on March 10, 2000. Read more »