Since Christmas Eve, the price of Procter & Gamble stock has declined 8.5% from $93.89 to $85.90 to give the consumer giant a 3.00% yield for those contemplating buying the stock right now. That is something that catches my attention because, in the past 25 years, Procter & Gamble never had a year in which its dividend had an average yield of 3% or higher until 2010 (however, during the 2010-2015 stretch investors could have purchased Procter & Gamble with a 3% yield or better in each of those years).
Does Procter & Gamble yielding 3% indicate that the stock is worth buying, given its favorable dividend valuation compared to the past generation? … Read the rest of this article!
When I was reviewing an old Sears training manual from the
1980s, I encountered passage that was being used to train new salespeople. The
passage pointed out that every American has a fixed amount of discretionary
income, and it is up to the sales guy to capture as much as that “pie” as
possible by suggesting additional features, extended warranties, and various
From the customer’s perspective, encountering someone with such
a sales perspective is self-evidently awful because it means the ultimate objective
is not to provide you with what you need but rather to pry as much money out of
your wallet as possible. This can easily lead to a generalized … Read the rest of this article!
Berkshire Hathaway owns 14.2% of American Express. Warren Buffett himself owns almost 5% of the entire credit card company. The Berkshire portion consists of 151,610,700 shares. Buffett’s story with American Express began early in his career—1963—and was Buffett’s first big investment in the aftermath of his father’s death.
What happened was this: A businessman named Tino de Angelis took out loans from American Express, Bank Leumi, and a predecessor to Bank of America. He posted barrels of salad oil inventories as collateral to offer the banks a security interest in exchange for the cash they sent his way, and de Angelis cleverly created fictitious salad oil reports to run one of the largest … Read the rest of this article!
Earlier this week, Coca-Cola (KO) reported its fourth quarter results for the end of 2014. Because many analysts were expecting results somewhere in the $0.41 or $0.42 range, the price of the stock has increased to $42.50 after Coca-Cola reported that it made $0.44 per share in profits during the fourth quarter. The sentiment surrounding the stock has witnessed an uptick in popularity following Coca-Cola’s favorable results in light of expectations.
There is a negative context, however, that needs to be kept in mind. Coca-Cola’s fourth quarter results of $0.44 per share is still less than the $0.46 per share that Coca-Cola made in the fourth quarter of 2013, and the results for … Read the rest of this article!
If you do enough financial reading, you will eventually encounter finance writers that encourage you to buy companies yielding 7%, 8%, 9% as a suitable investment for retirees seeking income. With the exception of some energy MLPs (which can make sustainable high-yield distributions because they return all of their profits to shareholders and part of the payout is a return of your own investment capital), I find it unfortunate that certain companies are being touted as long-term investments when they don’t even have a five-year track record of making consistent payouts. Something yielding 10% now, but didn’t exist as a business in 2005 and cut its dividend in 2008 and 2010 doesn’t strike … Read the rest of this article!