With the cancellation of nearly half of the NHL season, the pro
hockey players have lost $788 million and counting in salaries.
From a finance prospective, here is a list of a few dividend
stocks, along with how much of the company could be bought with
Apple Inc. (
Computer and mobile device maker Apple's (
) stock has been declining since the release of the highly
anticipated iPhone in September 2012. The stock, which reached its
all-time high of over $700 at the time of the release, is now being
traded around $546.26. Although AAPL paid a quarterly dividend for
nine years between 1987 and 1995, the company stopped paying
dividends until 2012. The company currently offers an annualized
dividend of approximately $10.60 per share, making for a yield of
If an investor had $788 million to invest, and decided to invest
in Apple, the investor could buy over 1.4 million shares of the
company. With current dividends, the investor could earn over $15
million annually in dividend payments.
AT&T Inc. (
Telecom giant AT&T's (
) stock has been up and down over the years, but its annualized
dividend has had a continuous upward movement in the last ten
years. In 2002, the company paid a quarterly dividend of 27 cents
per share, but by 2012, that dividend increased by 38% to a
quarterly dividend of 44 cents per share.
With $788 million, an investor would be able to purchase over 23
million shares of AT&T at the stock's current price of $34.08.
An investor today would earn $40.6 million in dividends this year
if they invested the full $788 million into the stock's annualized
dividend of $1.76. If this trend continued in the next ten years,
the dividends could reach $2.42 per share annually.
Microsoft Corporation (
As the demand for Microsoft's (
) PC software declines, so does its stock price. MSFT's stock price
may see its ups and downs, but the company has been steadily
increasing its dividend payments since 2005. Investors saw a 60%
increase in dividends from 2005′s annualized dividend of 32 cents
to 80 cents in 2012.
An investor looking to invest $788 million into the company
could purchase 28.7 million shares at the current share price of
$27.41. With the current annualized dividend payment of 80 cents
per share, that investor would earn nearly $23 million in dividend
payments this year.
Over the past nine years, the company averaged a little over 1
cent a year increase in quarterly dividend payment. Averaged out,
in the next ten years, MSFT could be paying an annual dividend
around $1.32 per share should that trend continue.
General Electric (
Although GE's stock took a plunge in 2009, the stock has slowly
been working its way into an upward trend. In 2002, the stock paid
a quarterly dividend of 18 cents, which increased every year until
2009. During the financial downfall, GE cut their dividends to just
10 cents a quarter. Since 2009, dividends have been increasing, but
they have yet to reach the levels which were paid prior to
If an investor put $788 million into GE, they would be able to
buy 36.5 million shares of that company at the current stock price
of $21.55. An investor would earn over $24 million from the stock's
68 cent annualized dividend this year.
Believe it or not, all those lost NHL wages could've actually
bought entire companies. We're not talking penny stocks here,
either - some very legitimate companies have a market cap smaller
than the total amount of lost NHL wages. For example:
- Alliance Financial Corp (
) - This micro cap regional banker operates a few dozen branches
and offers a 3% dividend yield. With a market cap of about $205
million, NHL players could've acquired ALNC more than three times
- York Water (
) - This company supplies drinking water to several
municipalities in Pennsylvania. YORW offers a 3.2% dividend yield
with a market cap of around $225 million.
- United-Guardian, Inc. (
) - With a market cap of just $90 million or so, this maker of
chemical compounds used in cosmetics and pharmaceuticals could
easily be swallowed up by all those lost NHL wages.
With just a little more than half of the lost NHL salaries thus
far, an investor could've bought
all three of the companies
The Bottom Line
The NHL lockout has cost pro hockey players an amazing amount of
money thus far. That money could've been used for smart investments
like high-quality dividend stocks and already generated millions
more in dividend returns. Although most investors don't have
hundreds of millions of dollars to put into the markets, hopefully
this article illustrates the power of owning high-quality dividend
stocks - and how badly the NHL lockout is hurting the players