dividend

Dividends Have Their Best Month Ever – Barrons.com

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By SHIRLEY A. LAZO | MORE ARTICLES BY AUTHOR August’s cash dividend payments of $34 billion set an all-time monthly record. That tally, by Howard Silverblatt, senior index analyst at S&P Dow Jones Indexes, compares with the prior peak of $32.1 billion in November 2011. Furthermore, it was achieved despite the fact that payout ratios remain very low, with companies distributing less than a third of what they are making. Historically, the rate is 54%. via Dividends Have Their Best Month Ever – Barrons.com.

Someone Smarter Than You Just Sold All His AAPL

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Aswath Damodaran is what the investing world would call smart money.  As  a professor of finance at NYU, he wrote Damodaran On Valuation.  And yes, that means he wrote the book on valuation.  So when you hear that he just dumped AAPL from his portfolio with a cost basis of $5 a share, should you follow suit?  Price targets, valuations, and headlines aside, Aswath is simply following the most fundamental rule of investing: if you don’t like the stock, then just get out.  Now Aswath doesn’t have a problem with Apple, rather it’s with the type of people currently buying … Read more

Buybacks And A Dividend The Answer For Apple

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Looks like Apple finally has a solution for the pile of cash they have amassed.  According to SFGate, shareholders should expect a dividend of $2.65 and a significant buyback of stock that would return another 10 billion or so on a quarterly basis.  Apple’s decision will be completed over the next three years.  In the wake of the new iPad 3 selling out almost immediately, the tech giant knows that they need to start moving all this cash off their balance sheets.  Especially considering how it seems the massive company has been sucking some of the life out of the … Read more

‘s not hard, just follow the Dividend..

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For those of you long AAPL yesterday, the paltry 6% or so gain on the most impressive numbers that we’ve seen to date from the tech giant were a bit depressing.  The fact that every single metric that analysts provided estimates on was completely blown out of the water combined with the $7 drop in share price before the announcement only reinforces the fact that both analysts and the street had no idea how profoundly astounding Apple’s results would be.  So why doesn’t the market seem to reflect similar sentiment?  One word: Dividends.  With over $17 trillion in qualified retirement … Read more

The dividend component was responsible for 44% of the total return of the last 80 years.

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A steady reliable source of dividends will put a floor on the price of many stocks.    According to Standard & Poor’s, the dividend component was responsible for 44% of the total return of the last 80 years of the index.   The orange curve in the chart above shows the results of having all dividends reinvested while the blue line reflects the investment without dividends and just stock appreciation.