It is a big dividend-centric news day with Apple (
announcing it will join the ever-expanding list
of big brands paying dividends.
Not to overlook another big headline, but United Parcel Service
announced a big acquisition
that will significantly expand its international reach. The market
seemed to like the move, with shares closing up by nearly $3.
Meanwhile, Wall Street analyst upgrades helped some stocks come
of the gate strongly this week, including Devon Energy (
), Abbott Labs (
), Capital One Financial (
), and U.S. Steel (
). One stock that lagged, courtesy of a cautious note out this
morning, was Apache Corp (
Apple to Pay Dividends!
Well, all the speculation about what Apple (
) will do with its $100 billion cash hoard is over. This morning
the company said
it would initiate a quarterly dividend
of $2.65 per share, which amounts to an estimated 1.75% dividend
yield. The dividend is expected to begin in July, while the
company's new $10 billion share buyback plan will start in
September. We will be initiating coverage of the stock once we get
the official dividend dates.
Will this development open the door for more major non-dividend
stocks (Google, Amazon, EMC, eBay, etc.) to come forth with their
own dividend programs? It's certainly a greater possibility,
although income-seekers should not get their hopes up on a high
dividend yield. As we saw with Apple's announcement today, tech
companies are wary of offering high payout levels. Now that Apple
will be paying a dividend, how soon before the stock is considered
to be put in the Dow 30? Surely that move can't be too far off. The
leading candidates to be dropped from the
Dow 30 list
, in my opinion, would be Bank of America (
) and Alcoa (
On Any Given Day
For college basketball fanatics, March Madness is the biggest
time of the year. Teams from all over the county gather to see who
can bring home the coveted NCAA championship title.
The format is simple: lose and you go home. Teams get seeded
according to the their rankings and usually the best teams in the
country (1 through 3 seeds) playing the smaller schools (lowest
seeds 14-16). On the second day of this year's tournament, we saw
two #15 seeds knock off two #2 seeds (Lehigh beating Duke and
Norfolk State defeating Missouri). That event marked the first time
a #2 seed lost to a #15 seed since 2001. For the record, a #1 seed
has never lost to a #16 seed, but there have been some near upsets
over the last couple of decades.
Whenever we hear about these long-shot victories and then hear
the commentary, especially from the smaller school's winning
coaches, they tend to repeat the same message: believe in yourself,
believe in your teammates, and you can achieve what others see as
I find great inspiration from these small teams which are often
labeled "Cinderella stories." We all want to believe in our dreams
and imagine ourselves in a perfect situation - I don't care what
the age is. Actress/comedian Betty White, who is nearing her 90′s,
has never been more popular in Hollywood. She's refused to slow
down or stop pursuing her passion. Whatever the age, whatever the
purpose, whatever the passion, you must always believe in yourself
and your drive to achieve what others think you can not.
In moments of doubt, treat the situation like its do-or-die. For
some of those players on those Cinderella teams, you can bet that
was their mindset as they took the floor knowing those next 40
minutes could be something they will never forget about for the
rest of their lives. All the effort they brought day after day,
leading up to their moment to shine, was what set up their
opportunity to do the unthinkable.
For all of us, each day brings us a new opportunity to seek the
same glory and desire to succeed. On any given day it could be our
moment if we put in the same effort.
Funny Line of the Day (Thanks to My Mom)
I was talking to my parents last night after they came back from
my cousin's twins' Christening. Unfortunately my wife and I were
unable to attend due to prior engagements, so my mother broke the
event down for me.
She kept saying how nice the reception was, as that part of the
family isn't shy about spending big money on special occasions. In
the wit that only old school immigrants can provide, my mom quipped
"When these people do something, you gotta get
" (meaning wearing something fancy). It's a Seinfeld-like moment
for me when I hear something like that. Thanks, Mom!
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I hope everyone had a chance to check out our
members-only weekend articles , including new features that
highlight some of the biggest winners and losers from the week that
was, such as analyst upgrades/downgrades and earnings/story stocks.
These articles are a great way to catch up on the week that was in
the markets. We also have a rundown of how various Dividend ETFs
performed on the week.
Thanks for reading everybody. I'll see you tomorrow!
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here