The economy is not nearly as strong as most people think. There is no growth to speak of. And without growth, it doesn’t make sense to pay so much for stocks.
February 3rd, 2012 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "dividends"
Will 2012 Be The Return of Gold Stocks?
The fact that gold producers are paying a dividend on gold stocks is worth exploring. First, it means gold producers have cash flow. Now whether or not the best use of free cash flow is to return it to shareholders instead of pouring it into new exploration is for the punters to decide. But the fact is, gold is set to finish higher for the 11th straight year.
December 21st, 2011 | Dan Denning | 5 comments | Continued
Which Stock Investment Decisions Will You Make in a Credit Depression?
What stock investment decisions should you make when you recognise: government debt is no longer risk free, bank failures resulting from bond defaults by governments will feed asset deflation and lower stock prices and real money is better than unsound money.
December 12th, 2011 | Dan Denning | 0 comments | Continued
How Reinvested Dividends Can Double Your Return in Stocks
With the big four banks – traditionally high dividend players – being downgraded by Standard and Poor’s overnight, we thought it was a great time to revisit why dividends are important and how to safely buy the companies that issue them.
December 5th, 2011 | Dan Denning | 2 comments | Continued
Why Should You Be Focussed on Dividends?
Suddenly dividends start to look enticing. Actually, it’s not sudden at all. Investors take a while to realise the bull market is long gone. It’s been just on four years since the market peaked back in November 2007 and we’d guess there are plenty of punters who think the next bull market is just around the corner. Maybe they think we turned that corner today?
December 1st, 2011 | Greg Canavan | 1 comment | Continued
Why Reinvested Dividends Are Crucial Investments in the Next Ten Years
It’s the sort of boring fact that the investment industry doesn’t generally alert you to. And to be fair, it’s not very exciting. At all. But it does appear to be true, at least up to about 2003, that reinvested dividends massively increase your total return in common stocks over time.
November 30th, 2011 | The Daily Reckoning | 1 comment | Continued
Banks or BHP?
Are Australian banks going to be able to sustain their dividends? Over the last ten years, bank fee income has become a big driver of bank profitability (and the source of the dividends paid by banks). The credit crunch has crunched the amount of money banks make lending money.
August 13th, 2009 | Dan Denning | 3 comments | Continued
Dividends and a Sea Change in Corporate Behaviour Toward Shareholders
Maybe we’re getting ahead of ourselves with the idea that Aussie companies will begin boosting dividends to attract shareholders. After all, Bloomberg reports that Aussie firms tapped the equity markets for over $90 billion in capital in the last fiscal year. It’s what you do when you’re rebuilding your balance sheet and paring back debt.
July 8th, 2009 | Dan Denning | 1 comment | Continued
When Fears of Inflation Are More Pronounced
But let us not be accused of being pessimists. Take a look at the chart below. It’s from a 2002 book called Triumph of the Optimists by Elroy Dimson, Paul Marsh and Mike Stanton of Princeton University. It shows that over the last one hundred years-and importantly, prior to the blow-off phase of the credit bubble in 2000-dividends accounted for half of your total return in U.S. and U.K. common stocks.
July 7th, 2009 | Dan Denning | 1 comment | Continued
Dumb Money Eyes Stock Market While Smart Money Watches Economy
The dumb money is fairly easy to spot. It’s the money that always shows up late to the party, wearing yesterday’s fashions. It watches TV and thinks the reality shows show reality…it thinks Ben Bernanke is a great economist…that the SEC protects investors from fraud and misrepresentation…
June 10th, 2009 | Bill Bonner | 0 comments | Continued
Buying Stocks for Dividends Makes Sense…
In fact, things got so bad back then, and companies were so reluctant to cut dividends (probably figuring that nobody in their right mind would buy their shares otherwise), that “in 1933, American earnings per share dropped below dividends”! Wow! The companies paid out more money to shareholders than the company made!
March 17th, 2009 | Mogambo Guru | 3 comments | Continued
Dividend Drop-Off: When Cushions Turn To Rocks
Bloomberg, taking no interest in my insightful observations gleaned from a lifetime of paying for my screw-ups, is still talking about dividends, and reports that “Twenty-six companies in the S&P 500 saved more than $21 billion by cutting or suspending outlays this year, more than all the reductions from 2003 to 2007. On a per-share basis, S&P 500 companies may trim payouts 13 percent this year, the biggest drop since 1942.”
March 11th, 2009 | Mogambo Guru | 0 comments | Continued
