News Stocks 

Fidelity Investments: Valuations, Quality and Dividends Will Drive Stocks

“When it comes to value stocks, while valuations are elevated, Matthew Friedman, portfolio manager for the Fidelity Value Strategies Fund, said there are still some good, high-quality value stocks to invest in” writes Donna Fuscaldo for investopedia.com. With volatility back with a vengeance and concerns mounting that growth stocks are overvalued, Fidelity Investments fund managers are focusing more on choosing stocks that are high quality, properly valued and paying out dividends.The fund manager pointed to Apple Inc. (AAPL) as another example of a company with a big moat.The fund manager pointed…

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News Oil 

Shale firms pump up dividends as industry focus on returns grows

“Seven U.S. independent shale producers, including Anadarko Petroleum Corp and ConocoPhillips , have boosted quarterly dividends this year, financial disclosures show” reports businessinsider.com. That’s a change from just two years ago, when eight of the 25 largest shale firms cut payouts as oil prices plunged.Investors in shale have seen thin returns despite booming production, as shale firms have used profits to invest in raising output more rather than returning cash to shareholders.Twelve of the 25 largest shale firms do not have quarterly payouts, choosing instead to reinvest cash in drilling…

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News Stocks 

CITI: There are 2 ways America’s biggest companies dole out cash to shareholders — and one is way better than the other

“There are two primary ways public companies return capital to their shareholders: by paying out dividends or buying back shares” writes Akin Oyedele for businessinsider.com. Examining share-price performance is the most useful way to assess which is better between buybacks and dividends, Levkovich said.When companies throw cash at their own stock, they reduce the number of shares outstanding and signal their stock is undervalued.”Episodic buybacks are less interesting to us versus companies that seem to have the excess cash flow and strategic desire to return cash regularly.But the chart below…

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Markets News 

Dividends are growing — but the market’s not buying it quite yet

“Even more so if traditional core bond holdings are vulnerable to a sell-off in fixed income markets spooked by inflation” writes unknown author for cnbc.com. While fear of the recent past may have dampened enthusiasm for this style of investing — in reality the opportunity for income investors is only growing.Global dividends broke new records in 2017, according to asset management group Janus Henderson, and at this run rate will probably rise again in 2018.Janus Henderson cites a combination of higher economic growth and rising corporate confidence.The banks were traditionally…

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News Oil 

Scandal-hit Brazilian oil giant promises dividend as soon as it returns to profit

“The semi-public company Petrobras has promised to start paying dividends to shareholders again, as soon as it returns to profit after being hit by several scandals in recent years” writes Steve Sedgwick for cnbc.com. However, Silva shrugged off any concerns about the country’s next leadership, arguing Petrobras is focused on its business plan.Silva told CNBC the company has made “much, much progress” in changing its governance and culture. “For us there’s only once scenario, which is the business plan we have to deliver, so we are focused totally in the…

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News Stocks 

US firms will now focus on stock buybacks after tax cuts, David Rubenstein says

“Buybacks happen when firms buy their own shares trading on the stock exchange, reducing the portion of shares in the hands of investors” writes Natasha Turak for cnbc.com. The trend would appear to contradict Republican claims that its tax package, the biggest tax overhaul in three decades, was targeted at strengthening the middle class.Companies are likely to focus on bolstering their capital in the wake of massive U.S. tax cuts, although making accurate predictions on their effects is impossible, according to Carlyle Group co-founder David Rubenstein, who spoke during a…

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Apple has $200 billion to play with — here’s what it might do with all its overseas cash

“An Apple representative did not immediately return a call seeking clarification about the company’s plans for its overseas cash” writes Troy Wolverton for businessinsider.com. But it was unclear exactly how much of these investments will come from Apple’s overseas cash stash as opposed to the cash it generates from its ongoing operations.As of the end of Apple’s fiscal year last September, the iPhone maker had $253 billion in overseas cash and so-called marketable investments.Before talking about how Apple will spend the money, it’s important to understand some of the dynamics…

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News 

Apple special dividend coming? Makes sense, says Gene Munster

“Cincinnati Financial Corp. (CINF), CME Group (CME), Duke Realty (DRE), Ford (F), Host Hotels & Resorts (HST) and PACCAR (PCAR) paid investors special dividends in 2017” writes Suzanne O’halloran for foxbusiness.com. Thus far it has been conservative with its dividend, according to dividend watchers, despite a market value of nearly $900 billion.Apple, best known for iPhones, iPads and Macs, will have nearly $300 billion in cash to play with this quarter, according to investors.When Cook took over as CEO from founder Steve Jobs in 2012, he revived the dividend which…

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PG&E suspends dividends amid possible wild fire liability

“Some witnesses say they saw sparks flying from wind-whipped power lines as the fires broke out during gales of fierce, dry winds” reports foxbusiness.com. Pacific Gas & Electric Co. (PCG) is suspending dividend payments to shareholders out of concern for any finding of financial liability in Northern California’s devastating wildfires, the California utility said late Wednesday. The utility paid $921 million in dividends last year and had paid out $754 million through the first nine months of this year, regulatory filings show. Source: foxbusiness.com Share This:

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Markets News Stocks 

This dividend stock fund also bets on a decline in prices

“The Divcon rating encompasses free cash flow/dividends, earnings growth, dividend actions, stock repurchases and other indicators” writes Investing Columnist for marketwatch.com. The idea is that companies that are well-positioned for dividend increases are more likely to be better stock-market performers over time.Eric Ervin, the CEO of Reality Shares, is concerned enough about the stock market that he favors a strategy that includes betting on a decline in prices heading into 2018.If the company doesn’t pay a dividend on common shares, it won’t have a Divcon rating. Source: marketwatch.com Share This:

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