Stock buybacks have been in the news a lot recently. In 2018, companies repurchased insane amounts of their stock. But this is hardly a new practice. Stock buybacks have occurred for decades and are a common tool to provide value to shareholders. In today’s installment of our Financial Education series, we will examine stock buybacks, some pros and cons, and discuss how this impacts dividend investors!
This morning, I was updating my portfolio sipping on a nice, warm cup of coffee updating my portfolio with all the madness/dividend income that has trickled in so far in March. There is a reason why the third quarter of the month is everyone’s favorite dividend month, right? After re-reading Lanny’s article about updating you portfolio’s P/E Ratio on a regular basis, I became inspired to review one of the stocks that I have considered selling for a while now. I’ve been debating if the stock still fits the characteristics I look for in a dividend growth stock, so I thought today would be a perfect day to re-run Schlumberger (SLB) through the Dividend Diplomats Stock Screener and see if action is necessary.
What a month it has been for the market and it seems like every day there was a development that caused the stock market to toss and turn. Heck, the turbulent market allowed the two of us to purchase shares of Norfolk Southern Corporation and Lanny to continue to decrease his average cost basis per share in Canadian Imperial. The buying hasn’t stopped with us, as many other dividend growth investors in the community have purchased some solid companies as well. Through all of this, one Dividend Aristocrat’s stock price continues to fall (Down 13.4% YTD!) and pop up on my personal stock screener. So I thought “why not analyze the company to see if I should use my excess capital to purchase shares?” Now, it is time to put Emerson Electric (EMR) through the Dividend Diplomats’ Stock Screener!
What is the one thing that dividend growth investors love more than receiving a dividend check? A company announcing a dividend increase! Judging by my excitement and the fact that I am writing this article in the first place, it is a pretty safe to assume I just received a double-digit dividend hike! Recently, Dow Chemical announced a pretty nice dividend increase for its shareholders. However, the value did not stop at the dividend increase. This article will review both actions taken by Dow Chemical to increase their shareholder’s value in their investment.