Posts by: kcaron
The stock market is near $50 trillion in value, about $15 trillion greater than before COVID-19. Stock values rose far faster than bonds, market earnings forecasts are hitting new highs, and companies are finding it easy to borrow. Yet there are signs that this happy situation could be poised to change. This week, we look at some recent evidence to support this claim.
Where do you want to be invested when faced with the prospect of a bear market? Some say that high dividend yields provide protection when stocks fall. This implies that since the yield rises as the stock price declines, new buyers will be attracted as the price drops. Such buyers could help establish a “floor” below the stock. While this sounds good in theory, we find scant evidence that it actually works in practice. This strategy fails when needed most because “high yielders” tend to be fundamentally weak. While some high-yielding stocks may be good bargains, most high yields reflect…
January 28, 2022 | Ewing, NJ The Board of Directors of Church and Dwight Co., Inc. has declared a regular quarterly dividend of $0.2625 per common share, an increase of 4% over the previous quarterly dividend. Year to date, this marks the third dividend change for the Washington Crossing Advisors Rising Dividend portfolio. All three changes were increases. The average dividend increase was 9% compared with December 31, 2021 indicated levels. From the press release: “The Company’s Board of Directors declared a 4% increase in the quarterly dividend from $0.2525 to $0.2625 per share, equivalent to an annual dividend of $1.05 per share. This raises the…
We publish this year’s Viewpoint 2022 amid ongoing recovery from an unprecedented pandemic. Signs of continued growth are apparent despite new COVID-19 variants and anticipated policy shifts. Long-run return expectations fall this year in as valuations and profit margins are elevated for stocks. For fixed income investors, surging inflation and expectations for rising rates are of primary focus.
December 10, 2021 | Omaha, NE The Board of Directors of Union Pacific Corporation has declared a regular quarterly dividend of $1.18 per common share, an increase of 10% over the previous quarterly dividend. From the press release: “Union Pacific Corporation (NYSE: UNP) announced that its Board of Directors today voted to increase the quarterly dividend on the Company’s common shares by 10% to $1.18 per share. The dividend is payable December 30, 2021, to shareholders of record December 20, 2021. Union Pacific has paid dividends on its common stock for 122 consecutive years.“Union Pacific continues to deliver strong cash…
December 10, 2021 | New York, NY The Board of Directors of Pfizer Inc. has declared a regular quarterly dividend of $0.40 per common share, an increase of 2.5% over the previous quarterly dividend. From the press release: “Pfizer Inc. (NYSE: PFE) today announced that its board of directors declared an increase in the quarterly cash dividend on the company’s common stock to $0.40 for the first-quarter 2022 dividend, payable March 4, 2022, to holders of the Common Stock of record at the close of business on January 28, 2022. The first-quarter 2022 cash dividend will be the 333rd consecutive…
December 9, 2021 | Houston, TX The Board of Directors of Waste Management, Inc. has declared a regular quarterly dividend of $0.65 per common share, an increase of 13% over the previous quarterly dividend. From the press release: “Waste Management, Inc. (NYSE: WM) today announced that its Board of Directors has approved a 13% increase in the planned quarterly dividend rate for 2022, from $0.575 to $0.65 per share. On an annual basis, the dividend rate increases from $2.30 to $2.60. This will mark the nineteenth consecutive year that the Company has increased its per share dividend. The Company also…
Despite an ongoing economic recovery and bull market in stocks, we see a growing set of reasons suggesting some caution may now be warranted. In this week’s commentary, we will lay out these reasons and offer some ideas for navigating more challenging market environments.
December 2, 2021 | St. Paul, MN The Board of Directors of Ecolab, Inc. has declared a regular quarterly dividend of $0.51 per common share, an increase of 6% over the previous quarterly dividend. From the press release: “The board of directors of Ecolab Inc. today declared a 6% increase in the company’s quarterly cash dividend to $0.51 per common share, to be paid January 18, 2022, to shareholders of record at the close of business on December 14, 2021. This increase results in a new indicated annual cash dividend of $2.04 per share in 2022 and represents Ecolab’s 30th…
November 30, 2021 | Kenilworth, NJ The Board of Directors of Merck has declared a regular quarterly dividend of $0.69 per common share, an increase of 6% over the previous quarterly dividend. From the press release: “Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced that the Board of Directors has declared a quarterly dividend of $0.69 per share of the company’s common stock for the first quarter of 2022. Payment will be made on January 7, 2022 to shareholders of record at the close of business on December 15, 2021.”1 About the company: “For…
With the U.S. stock market near highs, we look at the role “beta” plays in portfolios and why we favor combining “beta” with fundamentals. We find that 1) the pandemic era brought a rise in average “betas”, and 2) that “betas” behave differently based on fundamental quality.
In the very long run, it is growth that dominates other drivers of return. In this commentary, we look at why valuations and profit margins matter less than growth over time. With profit margins and valuations at or near highs, we conclude that we should not depend on further increases in margins or multiples for return. Instead, growth and dividends will become more important for us as long-term investors.
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