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Opinions and views from expert CFOZone members.

Tag >> dividends
Dec 15

Dividend payments expected to grow

Posted by Stephen Taub in Standard & Poor'sinvestorsdividendsCashbuybacks

Stephen Taub

President Obama's second stimulus plan--which is widely being called a tax deal between the two major parties--continues to encourage companies to issue dividends. This is because among the many goodies for individuals and companies, the bill would extend for two years the 15 percent tax on qualified dividends.

As a result, Howard Silverblatt, senior index analyst at S&P Indices, expects more companies to hike their dividends in 2011, and the increases to be bigger, according to published reports.

Aug 04

Dividends make a comeback

Posted by nicklord in SchrodersRolls RoyceGEdividends


In the rush of positive earnings announcements that have been released by European companies this week, there is one clear sign of corporate health: dividends are back. A whole range of companies in sectors from insurance, to banks and aerospace have announced increases or even resumptions to dividends payments. These payments had been severely curtailed during the last two years of the global financial crisis.

UK financial services group Schroders announced Thursday a 10 percent increase in its dividend payout to 11 pence a share. Last week Rolls-Royce announced that it was increasing its first half dividend by 6.7 percent despite only increasing profits by 4 percent over the same period.

Jun 23

Dividend increases a sign of weak economy

Posted by mcole in unemployment, shareholdersshare repurchaserecoverydividendsCash


While the US economy struggles to recover and the unemployment rate continues to hover around 10 percent, several companies have increased dividend payments in recent weeks for lack of opportunities to invest in their business.

In early June, Target authorized a 47 percent increase in its quarterly dividend, citing the fact that "cash generation is well above the amount needed for optimal reinvestment in its core business."

Jun 02

While oil spews, Transocean pays $1 billion in dividends

Posted by Stephen Taub in Transoceanshare repurchasedividendsCashbuybacks

Stephen Taub

Transocean, whose oil rig is the one that blew up, resulting in the worst oil disaster in history, is planning to move ahead with a $1 billion dividend payout.

In February, the company's Board of Directors authorized a $3.2 billion share repurchase as well as the gargantuan dividend.

Apr 30

Buybacks to exceed dividends this year

Posted by Stephen Taub in stock optionsdividendsDealsCashbuybacks

Stephen Taub

As the economy continues to improve and more companies accumulate excess cash, they are increasingly rewarding investors with cash dividends and stock buybacks.

And, although both dividends and buybacks are expected to increase this year, the pace of buybacks has accelerated in recent quarters.

Mar 21

European CFOs boost dividend payouts

Posted by nicklord in ING, Eurostoxxdividends


More evidence is emerging of European companies being flush with cash, as this blog has been noting for the past few weeks. New data released by Factset and ING shows that some of the largest European companies are expected to markedly increase their dividend payouts in 2010.

Factset predicts that overall payouts from the Eurostoxx 600 index will increase by 18% this year over last year. ING's analysis of dividend payouts shows that the rolling average of comapnies increasing dividends versus those decreasing dividends has turned positive for the firt time in six months.

Mar 15

Pepsi’s dividend and buyback boost can’t mask all its question marks

Posted by mcole in shareholdersRiskdividendsCashbuyback


PepsiCo is boosting its cash return to shareholders by increasing its annual dividend and its share buyback program, but it may not be enough to make up for the beverage company's slowdown in internal growth.

Pepsi said on Monday that its board approved a 7 percent increase in the annual dividend on its common stock and authorized the repurchase of up to $15 billion of shares through June 2013. It plans to repurchase $4.4 billion in 2010.

Mar 04

All-cash deals don’t portend an end to cash hoarding

Posted by MQuinn in recoverymergersdividendsDealsCashbuybacksacquisitions


We in the financial press are often guilty of overzealousness in our trend-spotting attempts. And we can be just as guilty of overanalyzing -- and under-analyzing -- the tealeaves laid out by those trends.

The Wall Street Journal on Thursday ran a story with a lead of "One year removed from the trough of the recession, American corporations continue to hoard more cash than ever. There are now tentative signs that they are finally comfortable using the money to do some shopping."

I'm just as eager as anyone to see a strong economic turnaround and certainly an uptick in deal-making is a sign that companies are more confident. But pointing to an increase in all-cash deals does not signify companies are at all willing to dip into their cash piles.

Feb 26

Will Jobs really be bold with Apple’s cash?

Posted by MQuinn in Steve Jobsdividends, cash management, CashbuybacksApple


Leave it to Steve Jobs to make $25 billion sound like rainy day money.

On Thursday, Apple's visionary CEO pooh-poohed the suggestions of those who think the company should buy back shares or pay a dividend, saying he prefers to hold on to that cash for acquisitions and investments.

But given Apple's history of deal making under Jobs, he might as well have said, "Our shares are up 135 percent since the beginning of last year alone, so shut up about the cash."

Dec 01

Special dividends will hit record next year, tax expert says

Posted by HJohnson in taxesTaxshareholdersdividends


A record number of companies will issue special dividends next year as they prepare for Bush-era dividend tax rates to expire, tax expert Robert Willens told

"I am looking for absolutely a record and it will probably pick up steam as the year unfolds and probably in the fourth quarter of 2010 as these predictions we are making about higher-tax rates come to fruition," Willens, president of Robert Willens LLC, said in a Q&A on the site. (For the full article, click here .)

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