Dividend Garden

Dividend growth investing, dividend investing, value, long-term horizon
Dividend Garden
Dividend growth investing, dividend investing, value, long-term horizon
Contributor since: 2012
Ironically, it will probably outperform due to the lowered expectations.
Great question. I would say no, as people sell for a variety of reasons. That's normal with any company, with selling transactions outnumbering buying many times to one.
Thanks, Alan. I think that's a great idea.
Love the data-driven article. You earned a follow. Keep up the great work.
As a GE shareholder, I was not happy about this acquisition. Many CEO's tout "synergies" and potential cost-savings as they try to sell the deal to the shareholders. In the end, cost-savings generally do not materialize and the deal amounts to empire-building.
MCD at an all-time high today, probably bad timing to put out an article saying that it's poisonous to your portfolio...
The press release doesn't make this sound like a spinoff, but more like an investment into a new company. Just wondering if the GE stockholders will actually receive shares in the new company.
I wouldn't call it garbage. I would like to point out that Disney has a different strategy with regards to buybacks. Disney will use it's stock to buy a company like Lucasfilms, then spend a couple of years buying back that stock. Then, it will use the SAME stock to buy something else, like Marvel, then spend a few years to buy back that stock. Longterm holders of DIS understand this, knowing that it's an investment in future earnings. Time and time again, it's done this with the Muppets, Pixar, etc.
Michael, do you think PSX will use the $1 billion to retire shares? They have already bought back & retired 14% of the company since spinning off from COP. (635 million to 545 million shares outstanding)
The article title begins with "Cheap Growth", but at 30 times earnings, it's hard to call this cheap. What valuation would you consider expensive?
Thanks for commenting, Tbeartoo. Yes, they do issue a lot of special dividends. Not a bad thing at all, since they have a lot of cash on hand and no debt. A special dividend allows them to return cash to shareholders and not have to be viewed as "lowering" the dividend afterwards. Thanks again for reading.
Thanks for commenting, ferjen. I would say that being dependent on the automotive industry, it can be a very cyclical company. Also, as a publicly traded stock, it is always subject to p/e compression (and expansion). However, being debt-free and profitable during a trough can really set a company up for success. Contrast that with small, highly-leveraged oil exploration companies that are struggling during the trough of the cyclical oil industry right now. They simply can't weather the storms very long. Thanks again for reading & commenting.
Exactly, Nick. This is when they need to step up the repurchases.
Yep, looks like the majority of the y/y change was in the previous three quarters.
Wow, $IBM bought back 7% of it's diluted shares outstanding over the past year.
Three months ended December 2014: 995 million shares outstanding
Three months ended December 2013: 1,080 million shares outstanding.
http://bit.ly/1ukSuge
I wonder if MCD could license it to other fast food restaurants. On the one hand, they might not want to help the competition, but on the other hand, it would be a tremendous additional source of revenue.
Thank you, Frozen & Guardians of the Galaxy!
Thank you very much, BDX!
If they buy Keurig or Monster, then they did it in a way that's not good for KO shareholders. By buying only a small portion, say 1/5th of the companies, the remaining stock shot up and would have to be purchased at a substantial premium compared to that initial bloc of stock.
I sold a bunch of INTC stock when they failed to increase their dividend. If they had only done it last quarter, they could have kept their streak going and stayed on the CCC list. Too bad.
It's a 6.7% increase. Old dividend is $0.90, new dividend is $0.96.
Looks like shares outstanding continue to creep higher. Seeing outstanding shares decrease would be the icing on the cake.
They are diluting their EPS loss, sort of a reverse of buying back shares to increase a positive EPS.
"For Q3 2014, the Company recorded a net loss attributable to common shareholders of $3.7 million or a loss of $0.47 per share on 7.9 million weighted average shares outstanding. This compares to a loss of $2.1 million or $1.83 per share on 1.1 million weighted average shares outstanding in Q3 2013."
Wow, their shares outstanding increased from about a million to about eight million!
I am nervous about Disney Shanghai. They sure are spending a lot of money on that park...
Revenue up 8%, net income up 22%, shares down afterhours? What's wrong with people?
This isn't a spinoff, like how COP spun off PSX and shareholders got to keep both. This is a splitoff, and shareholders have to choose to exchange PG shares for Duracell shares. I don't think most investors like splitoffs, but I agree that they do like spinoffs.
I still don't understand why PG shareholders would exchange their "higher-margin" PG shares for the "underperforming" and lower-margin Duracell shares.
"The company has also announced that they will be parting with their very well known Duracell battery brand. The thought process behind this has been to drop brands that are not profitable to the company and focus on creating growth on the most profitable products for the company."
Are you saying that Duracell wasn't profitable?
In the Company Updates section of the press release, they say "The company repurchased 10.5 million shares of common stock in fiscal 2014."
But then, on the financial tables, it shows 2013 shares outstanding of 762.3 million. The 2014 number increased to 763.1 million.
Is there a typo?