News 

As companies sweeten dividend payouts, this is what investors need to know

“While its dividend yield is still a modest 1.56 percent, for the many investors who own the stock, a climbing dividend is a welcome development” writes unknown author for cnbc.com. On May 1, Apple announced a long-awaited dividend increase.The average dividend increase is also climbing compared to the recent past. “Companies are increasing dividends faster in 2018.”.  Source: cnbc.com Share This:

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S&P 500 companies return $1 trillion to shareholders in tax-cut surge

“S&P 500 companies have also plowed some of the windfall from lower taxes into investments toward growth or becoming more efficient” writes Midwest Communications Inc for 95kqds.com. Earnings per share of S&P 500 companies surged 26 percent in the March quarter, boosted by the Tax Cuts and Jobs Act passed by Republican lawmakers in December.In the 12 months through March, S&P 500 companies paid out $428 billion in dividends and bought up $573 billion of their own shares, according to S&P Dow Jones Indices analyst Howard Silverblatt.SAN FRANCISCO (Reuters) –…

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Impact investing and dividends — just one combo that uncovers rare alpha

“In fact, an ESG overlay on a high dividend yield strategy would have improved its returns by nearly 3 percentage points a year” writes Anora M for marketwatch.com. In a world of elusive alpha and passive index investing, the path to enhanced returns lies through combining socially responsible and impact investing with another factor, such as dividend yield of value, according to analysts at Bank of America Merrill Lynch. Source: marketwatch.com Share This:

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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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