In fact, while many are fearing the dividend tax hikes that are part of the fiscal cliff, OSAM found that high-dividend stocks have actually performed best when taxes have been highest.
Even the Dow Industrial Average has retraced 50% of its recent decline as the fiscal cliff selling in the dividend-heavy Dow stocks has been especially heavy.
Detractors point out that buybacks artificially increase earnings per share, since net income does not change. (In other words, though each slice of the earnings pie is bigger, the size of the earnings pie does not change.) Repurchase programs also do not place the same level of fiscal responsibility on executives that dividend payments do.
It started paying a regular cash dividend from the fourth quarter of fiscal 2009.
Coach has raised its dividend 3 times since paying its first quarterly dividend of 7.5 cents in fiscal 2009.
Subsequently, it hiked its dividend by 100% to 15 cents in fiscal 2010, and then by 50% to 22.5 cents in fiscal 2011.
Assuming that the fiscal cliff thing does actually happen we might well find that dividend yields near dry up.
FORBES: This Might Not Be The Best Time To Be Investing For A Dividend Income
Dividend payments should also cause corporate executives to make better fiscal decisions since ceasing the payment of dividends implies that the company is struggling financially.
Aside from being a dominant tech power that is positioned for sustained growth, Oracle also proved that it is a savvy dividend payer by accelerating its next three dividend payments into one check at the height of the fiscal cliff situation.
To sweeten the deal for investors, the company paid a dividend of 16 cents per share in the third quarter of fiscal 2012, which marked a 14.3% increase over the same quarter last year.
The chart below shows the current dividend of each of the stocks, as well as their respective Fiscal Cliff Cost.
Nvidia this afternoon posted solid financial results for its fiscal third quarter ended October 28, and announced plans to start paying a quarterly dividend.
It's still recovering from recession pain but sells at 12 times my estimate of fiscal 2011 earnings and 75% of sales, and it sports a 4% dividend yield.
Oracle raised the dividend payout by 20% (20 to 24 cents) in the fourth quarter of fiscal 2011.
In what has to be seen as a very positive sign for IT spending, tech consulting firm Accenture this afternoon reported better-than-expected results for its fiscal fourth quarter ended August 31, provided strong guidance for FY 2012, and announced a 50% dividend increase.
Several companies have caught on the special dividend craze, deciding to return money to shareholders ahead of what could end up being a terrible fiscal cliff outcome.
FORBES: Jefferies Announces All-Cash 2012 Bonus Ahead Of Fiscal Cliff, Bloomberg Reports
Kohl's fell 51 cents, or 1.1%, to 46.10, after the department-store operator's earnings outlook for the quarter and full fiscal year were below analyst estimates, offsetting better-than-expected earnings and an increase in its quarterly dividend.
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